Fire insurance is the type of insurance policy, in which an individual pays some amount of money to the company, in exchange to receive benefits for the fire losses.
Fire insurance provides the security for home, stock, furniture, business buildings, etc,. Fire insurance provides the cost of replacement of properties and assets, which gets damaged due to the fire accident.
Fire insurance provides the benefits for the home owner in these ways
- It provides the cost of damage for the building
- It provides the replacement cost, if any furniture is destroyed due to the fire accident, like plywood furniture, carpets, clothes.
- It provides replacement or repair cost for the electronic items,which is damaged due to fire, like television, computer, air coolers.
Fire insurance provides benefits to the business in the following ways
- It covers the cost of stock damaged due to the fire
- It provides the death benefits to employee, in case of death occurred due to the fire accident.
- It provides the replacement or repair cost for the machines, if they get damaged due to fire accident.
- It provides the medical expenses for the employees, if they get injured due to the fire accident.
Fire accidents are very much unexpected but are heavily destructive. Hence, having a fire insurance is very much essential.