What is covered under fire insurance policy?

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Fire insurance policy is an agreement between the insurance company and insurance buyer, under which the insurance company guarantees to cover and pay for the damage caused by fire. This damage or loss is caused to the property or assets.The reason for fire could be any accidental explosion, electric spark or gas leak etc. Askari General Insurance is Pakistan's leading insurance company that provides fire insurance policy to companies and organizations by paying for their losses and damages to property caused by fire.


Types of fire insurance policies:


Under this insurance policy, Askari General Insurance covers the cost of replacement, reconstruction and repairs. Along with these, further coverage under fire policy includes:

  1. Earthquake
  2. Fire Explosion
  3. Damage to aircraft because of fire
  4. Any damage caused by riots ad strikes
  5. Any burglary

Agico also provides multiple policies and packages such as:


Household Comprehensive Policy


This policy covers residential units, the constituents and any valuable assets and even personal accident cover.


Shop Owners Comprehensive Policy


This policy is designed to cover small shop owners and retailers and covers their loss and damage caused by fire, their business money, plate glasses, infidelity etc.


Why is Fire Insurance important for businesses?


Fire accidents are always unexpected but always cause huge destruction to life and property thereby resulting in huge financial losses. Business owners are always prone to such risks and any eruption of fire may cause damage beyond control and losses difficult to recover. So, keeping in view above, it is important for business owners to consider buying fire insurance plans from a good insurance company because a fire insurance policy provides comprehensive protection against damage caused by fire eruption or explosion to assets or property. It also covers damages due to outbreak of fire such as office property, furniture, machinery, hardware etc. It may also cover losses due to natural catastrophe and calamity like earthquakes. Keeping in view the above benefits of fire insurance policy, business owners must always get a fire insurance policy for maximum protection of their businesses and assets from any incident of fire eruption.


Characteristics of a good fire insurance policy:


A fire insurance policy is a unique product of insurance companies that many people avail for their businesses and keep the risk of loss at bay. Let us now understand the characteristics of this policy to make it easier for you to take an informed decision:


Good will and good faith:


It is important for both insurance policy buyer and insurance company to disclose all facts and figures. Revealing all facts at the time of policy initiation will help the insurance company to craft a policy from which maximum benefits can be drawn.


Indemnity:


Under this policy, the insurance company or insurer is liable to cover all the losses and damages caused by outbreak of fire in whatever circumstances agreed between both parties. If the root cause of fire is natural heating or because of lighting for example any negligence like cracks or leaky roof/walls, then the fire policy becomes void. The policy covers fire explosion and fire to aircraft etc is also covered under this policy.


Who is eligible to get fire insurance policy:


The given eligibility criteria will help you to know whether you can avail this insurance:

  1. If you own a business and you wish to prevent any unforeseen damage to your commercial property, you are eligible.
  2. If you possess any building (residential or commercial), you are eligible.
  3. If you are a shopkeeper, and you wish to prevent any loss to your shop or goods, you are eligible.
  4. You are a hotel owner and your building is at risk because of fire, you are eligible.
  5. You are a manufacturer and your factory needs a prevention – you are eligible.