Fire Insurance in Pakistan
Fire Insurance And Its Features In Pakistan
Posted by Admin on 24 Jan 2023
Insurance protects you and your assets in case of an accident. Everything can be insured against all kinds of threats. Fire insurance works similarly, it protects you and covers your assets in the event of unexpected fires. Fire insurance has many features that we will discuss in today’s blog. Let’s take a look at them now!
What Is Fire Insurance?
Fire insurance reimburses the cost of repair, reconstruction, or replacement of any property damaged during the incident of fire. It also covers the damage caused by smoke and water while firefighters put away the fire. Hence it covers all kinds of property damage caused during the fire.
What Are The Features Of A Fire Insurance Policy?
There are many features of a fire insurance policy. Some of them are discussed below!
Insurable Interest In Property
This condition implies that the survival of the item getting insured should be beneficial for the policyholder and if the item is lost during the fire, the policyholder can suffer a loss. This is applicable both at the time of buying policy and at the time of claim.
Principal Of Utmost Good Faith
This states that at the time of buying the policy, the insured must spill all the details of whatever is being insured. The risk of the building catching fire, environment, construction of the house/shop, and other related queries. This is important because the insurer needs to calculate the risk and issue the policy accordingly. During any time when the insurer finds out that the vital information was hidden from them, they have all the rights to terminate the policy. The insurer is also responsible for telling you all the details about the policy and suggesting you the best one that suits your requirements.
Contract Of Indemnity
This states that the policyholder must only claim up to the limit settled at the time of buying a policy. In case there was no damage, the claim is no longer acceptable.
These were some features of the fire insurance policy. Now, look at who can get fire insurance.
Who Is Eligible For Fire Insurance?
Anyone who wants to protect their assets is eligible for fire insurance. It benefits the shopkeepers or business owners the most. For example, if you own a business of furniture or clothes and in case of a fire, these two things will get affected the most and will cause huge financial damage. So a shopkeeper or business owner must have fire insurance for such instances.
In conclusion, if you have any asset that you want to protect from fire whether it be your whole house or your business you must get fire insurance. This will reimburse the damages done by fire, smoke, and water while putting out the fire. Some policies may even offer the temporary residence for the ones who lose their houses and living spaces to fire. It also has emergency medical cover in case of burns and damage to one’s own health. So get insured now!