What is Fire Insurance

It is basically a contract between the insured individual and the buyer, where the insurer promises to pay for the loss or damages caused to the property of the insurer within a given period of time.
This insurance policy covers damages and loss caused by fire. It helps you pay for the medical and out-of-pocket costs that you may incur after an accidental injury. This includes emergency treatment, hospital stays, and medical exams, and other expenses you may face, such as transportation and lodging needs.

Types of Fire Insurance Policies

• Specific Fire Insurance Policy: If the damage is less than the insured amount, the insurance company compensates up to the amount damaged. If the damage is more than the insured amount, the insurance company compensates the sum equal to the insured amount or identify loss to the extent of the specific amount.
• Comprehensive Fire Insurance Policy: This policy covers all other kinds of risks like riots, arson, loot, civil commotion, wars, strikes, accidents, and others in single insurance.
• Valued Fire Insurance Policy: In this type of policy, the value of the property is fixed at the time of inspection is called valued policy. So in case of loss of property by fire, the insurance company pays the full of policy amount at the time of taking policy whether the property is fully damaged or not.
• Replacement Fire Insurance Policy: It is also known as a reinstatement fire insurance policy. In this policy, the insurer replaces the property that was lost in the accident. The assured sum is not paid in cash but the property is replaced. This is a device to prevent fraudulent claims.
• Excess Fire Insurance Policy: When the stock of the insured fluctuates, the insured can take a policy for an amount below the amount of the goods of the insured. In this instance, the insured might have to take another insurance policy to cover the maximum amount of stocks which might reach sometimes. The former type of policy is called First Loss Policy and the latter is called Excess Policy.

Benefits Of Accident Insurance Plans in Nigeria

Fire insurance coverage includes mishaps caused due to lightning, accidental fire, explosion or implosion, overflowing or bursting of water tanks and pipeline, leakage from water sprinklers and so on. The value of assets is calculated based on their market value; keeping in mind factors like depreciation and also appreciation in case of inflation Fire insurance also provides the security for home, stock, furniture, business buildings, etc, it provides the cost of replacement of properties and assets, which gets damaged due to the fire accident.

• Buildings
• Stock in trade
• Furniture, Fixtures and Fittings
• Plant and Machinery