You asked: What are the qualities of fire insurance?

What are characteristics of fire insurance?

Characteristics of Fire Insurance Contract

It is a contract of indemnity. The assured can, in the event of loss, recover the actual amount of loss from the insurer. This is subject to the maximum amount for which the subject-matter is insured. It is a contract of uberrimae fidei.

What are the functions of fire insurance?

The function of fire insurance is to make good the financial loss suffered as a result of the fire. It is not the function of fire insurance to replace the economic loss termed the ‘fire waste’. Such damage apart from causing financial loss to the owners dislocates the economic activity of the community.

What are the four main parts of a standard fire policy?

The Standard Fire Policy had four main parts. They were: –Declarations, Coverages, Conditions, and Exclusions.

What are the 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.
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What is the fire insurance policy?

​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. … Fire insurance coverage includes mishaps caused due to accidental fire, lightning, implosion or explosion, etc.

What is the procedure for fire insurance?

Fire insurance contract is based on mutual faith. On receipt of the proposal the underwriter assesses the possible loss involved in the proposal. The proposal may be accepted on its receipt or a surveyor may be sent to assess the proposal. When the underwriter accepts the proposal, the contract comes into existence.

What is good faith in fire insurance?

In a fire insurance contract, the legal doctrine of utmost good faith says that every material information should be disclosed. A breach of this clause may make the contract void.

What are the exclusions under fire insurance?

Exclusions Under Fire Insurance Policy in India

No cover for any damage/loss to any of the electrical machines, short circuit, apparatus, leakage of electricity, etc. No cover for loss/damage theft or expense incurred directly or indirectly caused by any kind of terrorist activity are not covered by the policy.

Who is insured under the standard fire policy?

Personal property coverage and personal liability insurance are provided for the named insured and all residents of the same household who are relatives of the insured, or who are under age 21 and are in the care of the insured’s family, or who are under age 24, a relative, and enrolled in school full time.

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What is the nickname of the standard fire policy?

The standard fire policy is also referred to as the 165-line policy. This name comes from the 165 number of lines on the page, the standard form that is used in most states. The policy usually ensures against fire damage to the property and other related perils that are completed in the policy.