What is meant by fire insurance?

Asked by: Jayda Parisian  |  Last update: March 3, 2023
Score: 4.8/5 (63 votes)

Fire insurance is property insurance that provides additional coverage for loss or damage to a structure damaged or destroyed in a fire. Fire insurance may be capped at a rate that is less than the cost of the losses accrued, necessitating a separate fire insurance policy.

What's the meaning of fire insurance?

fire insurance, provision against losses caused by fire, lightning, and the removal of property from premises endangered by fire. The insurer agrees, for a fee, to reimburse the insured in the event of such an occurrence.

What is fire insurance India?

Fire insurance is a kind of contract between the insurance company and the insured, where the insurer assures. The policy helps the insured to cover the risk of loss of property by accidental fire cases, in exchange for an annual premium.

What do mean by insurance?

Insurance is a way to manage your risk. When you buy insurance, you purchase protection against unexpected financial losses. The insurance company pays you or someone you choose if something bad happens to you. If you have no insurance and an accident happens, you may be responsible for all related costs.

What are the three elements of fire insurance?

Characteristics of Fire Insurance
  • Insurable Interest. Fire insurance demands the insured to have an insurable interest in the property to be insured. ...
  • Utmost Faith. ...
  • Contract of Indemnity. ...
  • Personal Insurance Contract. ...
  • Personal Right. ...
  • Direct Cause of Loss. ...
  • Description of Property.

Class 11 Business Studies Chapter 4 | Fire Insurance - Business Services

37 related questions found

What are 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.

What is the importance of fire insurance?

Fire insurance provides protection against unforeseen damage to or destruction of moveable and immovable property due to fire and other perils. 3. Other perils covered include lightning, explosions, malicious damage, natural disasters, impact damage, subsidence and landslide, and bursting of water tanks.

What are the 4 types of insurance?

Different Types of General Insurance
  • Home Insurance. As the home is a valuable possession, it is important to secure your home with a proper home insurance policy. ...
  • Motor Insurance. Motor insurance provides coverage for your vehicle against damage, accidents, vandalism, theft, etc. ...
  • Travel Insurance. ...
  • Health Insurance.

What Is insurance & its types?

Insurance policies can cover up medical expenses, vehicle damage, loss in business or accidents while traveling, etc. Life Insurance and General Insurance are the two major types of insurance coverage. General Insurance can further be classified into sub-categories that clubs in various types of policies.

What is the meaning of insurance PDF?

Definition. Insurance is a mechanism of risk transfer and sharing by pooling of risks and funds among a group of individuals who are exposed to similar kinds of risks for the benefit of those who suffer loss on account of the risk. Page 11. 10.

What is fire insurance class 11?

A fire insurance is a contract between the policyholder and the insurer. Here the insurance company will pay to the policyholder any loss caused to him or his particular property when destroyed by a fire accident. So the protection is against any damage that the fire causes.

Who can take fire insurance?

Any individual, firm, organization, or institution can apply for the fire insurance policy.

What is the scope of fire insurance?

Fire insurance plays an imperative role by shielding you against various types of losses or damages which may arise due to fire. Moreover, a fire insurance policy can be purchased by both households and business owners.

What are 12 perils of fire insurance?

Perils Covered:

Aircraft damage. Riot, Strike, Malicious damage (RSMD Perils) Storm, Tempest, Flood, Inundation, Hurricane, Cyclone, Typhoon and Tornado.

What is fire and marine insurance?

Fire insurance is an insurance that covers the risk of fire. It covers goods or property of the insured person. On the contrary. Marine insurance is one that encompasses risks associated with the sea. The subject matter covered here, is the ship, cargo and freight.

What is fire and lightning insurance?

It is type of insurance whichcompensate insured against financial loss or damage to commercial property being damaged or destroyed by fire and lightening but in response to market demand extensions of cover will be developed for other perils.

What are the 2 types of insurance?

There are two broad types of insurance:
  • Life Insurance.
  • General Insurance.

What are five types of insurance?

Home or property insurance, life insurance, disability insurance, health insurance, and automobile insurance are five types that everyone should have.

What is insurance risk?

In insurance terms, risk is the chance something harmful or unexpected could happen. This might involve the loss, theft, or damage of valuable property and belongings, or it may involve someone being injured.

What are main types of insurance?

Broadly, there are 8 types of insurance, namely:
  • Life Insurance.
  • Motor insurance.
  • Health insurance.
  • Travel insurance.
  • Property insurance.
  • Mobile insurance.
  • Cycle insurance.
  • Bite-size insurance.

Is fire insurance a general insurance?

Ans: Your building may get damaged due to fire or other perils and the losses will not be covered by a general insurance policy. For that, you'll need a fire insurance that will cover the damages sustained by the building.

Who created insurance?

Modern insurance can be traced back to the city's Great Fire of London, which occurred in 1666. After it destroyed more than 30,000 homes, a man named Nicholas Barbon started a building insurance business. He later introduced the city's first fire insurance company.

What is the period of fire insurance?

​Fire insurance policy is basically a contract between the buyer and the insurer, where the insurer guarantees to pay for the damage or loss caused to the property of the insurer for a particular time period. The policy is initially bought for a period of one year and it can be renewed every year.

What is fire claim?

It covers all the losses arising out of the accidental fire, subject to terms and conditions of the fire policy which is limited by the policy value and not by the extent of damage sustained by the property owner. In general, the following losses are covered: Actual loss of goods due to fire.

What is fire insurance and its characteristics?

A fire insurance is a contract between a policyholder and the insurance company in which the insurer agrees to compensate the insured in case of loss or damage happens to a particular property due to fire. The premium is also pre-decided and the insurer compensates for the loss up to the insured amount only.