What is standard fire insurance policy?

The Standard Fire Policy is Section I-property coverage of most package policies such as the homeowners and Special Multiperil. It provides the foundation for property insurance coverages regardless of the form in which they appear. declarations-description and location of property, insured amount, name of insured.

Which policy is common in fire insurance?

Comprehensive Policy: This policy provides extensive coverage not only against fire-related perils but also provides coverage against any other perils, such as robbery, burglary, civil rampage, etc. Valued Policy: At the initiation of the policy, the value of a particular property is determined.

What are the contents of fire policy?

Coverage under Fire Insurance Policy Additional living expenses due to damage to personal property. Loss to adjacent building or property due to fire in the insured building. Compensation paid to fire fighters. Fire triggered by electricity.

What is covered under SFSP policy?

Loss, destruction or damage to any electrical machine, apparatus, fixture, or fitting arising from or occasioned by over-running, excessive pressure, short circuiting, arcing, self heating or leakage of electricity from whatever cause (lightning included) Page 5 Liberty Videocon General Insurance Company Limited – …

How is Fire Insurance premium calculated?

The total value of your assets and building is the basic factor of the premium amount. The market value of the building and purchase value of all the contents are taken into consideration while calculating the premium amount.

What are the types of Fire Insurance?

Fire Insurance Types

  • Valued Policy. This is a fire insurance policy in which an agreement is framed and the insurer undertakes to pay in the event of destruction of property by fire.
  • Specific Policy.
  • Average Policy.
  • Floating policy.
  • Excess Policy.
  • Blanket Policy.
  • Comprehensive Policy.
  • Consequential Loss Policy.

How are fire insurance claims calculated?

Claim = Loss Suffered x Insured Value/Total Cost. The object of such an Average Clause is to limit the liability of the Insurance Company….

  1. The Company had the practice of valuing stock at cost less 5%.
  2. The value of fire insurance taken was for Rs 2, 15,000.
  3. The policy was subject to average clause.

What does it mean to have a fire insurance policy?

Introduction: A fire insurance is a contract under which the insurer in return for a consideration (premium) agrees to indemnify the insured for the financial loss which the latter may suffer due to destruction of or damage to property or goods, caused by fire, during a specified period.

What are the perils of a standard fire policy?

In addition to the perils/ expenses covered, the proposer can opt to seek cover in respect of the following perils/ expenses at inception or during currency of the policy on payment of additional premium. Earthquake (Fire and Shock). Spoilage material damage cover. Leakage and contamination cover.

What happens in the case of no loss fire insurance?

In case of a fire-break with no loss, no insurance liability will be offered. One-year Policy: The term fire insurance policy is generally for a year but it can be renewed depending on the terms and conditions mentioned in the policy schedule.

Can a one year fire insurance policy be renewed?

One-year Policy: The term fire insurance policy is generally for a year but it can be renewed depending on the terms and conditions mentioned in the policy schedule. Insurable Interest: The policy is valid when the insured has an insurable interest in the insured property. In case a loss occurs, such interest may be required.