Fire Insurance Definition, Types, Claim Process and Importance

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The Important function of an insurance organisation is settlement of claims promptly and fairly. Similarly, on the outbreak of fire, the insured must take such steps as are reasonable to extinguish the fire or to prevent it from spreading.

What is Fire Insurance?

A fire insurance could be bought as a part of property insurance or as a stand-alone policy. It offers compensation for the costs incurred in the replacement, repair or reconstruction of a property that was damaged due to fire.

Fire damages can have a catastrophic impact. When such an event occurs, fire insurance can be a great saviour. Having an adequate fire insurance policy can protect you and your business from possible financial crises due to fire damages.

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Types of Fire Insurance

Let us look at some of the types of fire insurance:

  1. Valued Policy
  2. Specific Policy
  3. Average Policy
  4. Floating Policy
  5. Consequential Loss Policy
  6. Comprehensive Policy
  7. Replacement Policy

If you happen to encounter an eventuality because of fire, you need to make claims under fire insurance. You should be clear of the procedure and the documents required.

Fire Insurance Claim Process:

The Insurance claim process is generally referred to as the time that a policyholder notifies his or her insurer of the occurrence until the claim settles.

  • Immediate notify to the insurance Company
  • Contact the fire brigade and the police for control of fire.
  • Insurance companies will depute a licensed surveyor for scrutiny.
  • Submit the duly filled in claim form and other proofs and photographs related to the occurrence of loss.
Also Read:  Key Tips on Avoiding Rejection of Insurance Claims

There are also few important things you must know to get the fire insurance claims settled steadily.

Know your Insurance coverage

Most of the fire insurance claim rejections are a result of not being aware of the policy coverage. So It’s essential to know each and every terms and condition of the policy.

Immediate Notice to Insurer

Immediately contact your insurance company to inform them about the loss you have suffered. Most of the insurers will have a time limit for notice of claim/loss under the policy.

Also Read: How does the Fire Insurance Contract work?

Documents required for filing a Fire Insurance claim

To expedite the claim process, keep all the below information ready

  • Date and time of Fire or accident
  • Nature of loss/damage
  • Location of the Incident
  • Full description of damaged content
  • Fire brigade report/ FIR from police department

Detailed list of items destroyed

It’s crucial to note the list of things you have lost in the event of the fire. This can help you get the compensation that you deserve.

Keep all the documents ready for verification

Keep all the documents related to insured property available to you along with the bills of the items that you have lost. This can help the surveyor to assess the loss correctly.

Extend full Cooperation to surveyors and insurance companies

Provide all the necessary information and documents they need to complete the claim process and indemnify you as per terms and conditions of the policy

Do Not inflate the claim Be Honest

Over-stating may result in denial of the claim if it’s proved as a deliberate act.

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Maintain record every claim document

Keep print of every claim document that you submit to your insurer. Have a track of all your discussions with the insurer during the claim process and document them. This can help you get the claim.

Finally, the extent of indemnity is limited to Value of the Subject matter lost and the Sum Insured for the affected items whichever is less.

Insurance Samadhan has handled over 13000 cases in last 20 months and aims to build a grievance free eco system for the growth of Insurance Business.

To reach us at InsuranceSamadhan.com –

Call us at – 844 844 0626

Mail us at – corporate@insurancesamadhan.com

Insurance Samadhan

Virendra Suri

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