What are the Moral Hazards in Fire Insurance?

The purpose of fire insurance is to offer you financial coverage in case of loss or damage due to fire. Further, a fire insurance policy comprises hazard, which is a condition that increases the chances of risk in an insured peril. There is a physical hazard and moral hazard; here we are talking about moral […]

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How is Proximate Cause Determined in a Fire Insurance Policy?

Proximate Cause is an important principle of insurance, which helps in deciding how the loss or damage happens and whether it is the result of an insured peril or not. The important point to consider here is that the proximate cause is the only nearest cause and not the remote cause. It mainly revolves around […]

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Which Expenses Are Covered by The Fire Policy?

A fire policy provides cover for any losses occurred due to fire to property, stock, or assets. A fire insurance policy is a comprehensive policy that works as a contract between the insurer and the insurance company (see “What is Fire Insurance Policy?” here). It offers compensation for the losses that take place due to […]

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Who Should Buy a Fire Insurance Policy?

Any individual, firm, organization, or institution can apply for a fire insurance policy. Given below is a list of people or entities who should buy a fire insurance policy: Owners of buildings and the owners of the content inside the building which includes artifacts, furniture, etc. Educational Institutions Shopkeepers Industrial or Manufacturing firms Godown keepers […]

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Which Perils Are Not Covered By Fire Insurance Policies?

The Perils not covered by fire insurance policies are mentioned below: Spontaneous combustion Burning of property by order of any Public Authority Property undergoing any heating or drying process The explosion of boilers (other than domestic boilers) Total or partial cessation of work Permanent or temporary dispossession by order of the Government Normal cracking or […]

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How Do the Insurance Principles Apply to Fire Insurance Contracts?

A fire insurance policy offers protection against losses or damages that may arise due to a fire accident. Like in the case of other insurance contracts, insurance principles are applicable to fire insurance contracts. Here are some ways through which insurance principles apply to fire insurance contracts  – 1. The complete disclosure of information – […]

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What are the 12 perils of standard fire insurance policy?

The 12 Perils of Standard Fire Insurance Policy A fire insurance policy is a contract between the policyholder and the insurance company to indemnify the insured for the financial losses suffered due to the destruction or damage of the property/goods caused by the fire. All the movable and immovable properties like buildings, plants & machinery, […]

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Which Assets are Not Covered by The Fire Insurance Policies?

Any individual with an insurable interest in a property should purchase a fire insurance policy. The policy is a comprehensive cover that provides for losses incurred due to a fire. Any individual who owns a property, plant, manufacturing unit, stocks, bank, financial institution, etc. should purchase a fire insurance policy. The premium for the policy […]

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