Fire insurance offers protection against most risks to property, such as fire, theft, and some weather damage. This includes specialized types of insurance such as fire, flood, earthquake, home or boiler insurance. Property is insured in two main ways: open peril and named peril.
Fire and property insurance in the USA
Open risk (PAR) covers all causes of loss not specifically excluded in the policy. General exclusions in open risk documents include damage caused by earthquakes, floods, nuclear accidents, acts of terrorism, and war.
Named perils require that the true cause of the loss be listed on the insurance policy to be issued. The most commonly named hazards that cause damage include fire, lightning, explosion and theft.
When you get an insurance policy, the maximum amount of compensation that the insurance company will pay for the particular damage or event is the sum insured specified in the policy.
Fire insurance in USA
The security deposit may need to be reassessed depending on the rising price of homes in the neighborhood The amount must be consistent with the actual reconstruction value of the insured home. In the event of a fire, the content of the home equipment is tabulated as a percentage of the home's value.
In the case of high-value items, the insurance company may require that these items be covered separately from other household contents. Your last coverage option is to make the alternative living arrangements listed in the document.
If the property damage caused by a covered loss prevents the insured from living in their home, the policy can afford to arrange alternative living expenses (such as hotel and restaurant costs) for a specified period of time to compensate for the "loss of use" of the home until they can go home .
Additional cost of living limits may vary, but is usually set at up to 20% of the housing coverage limit. The insured shall consult with the insured (insurance company) regarding the report on the appropriate coverage and determining the appropriate coverage limits.
Fire insurance in America
The next step includes determining the amount of insurance and its details in the sense of determining the value of assets, machinery and inventory, and after completing that step, the customer or the factory owner is asked a specific question, which is whether the factory is currently operating or stopped working?
A suspended or closed factory has a higher risk because in that case it will be neglected and there is no interest in it, which worries the insurance company, especially since a fire may break out and the factory owner will demand compensation to pay certain debts such as his debts to banks.
Note that the closed activity or the factory that is not working and stopped working, the insurance companies refuse to cover it or issue an insurance policy for it.
On the other hand, if the factory is operating, in that case the next step begins, which is to inspect the factory before issuing the insurance policy. The inspection is carried out through the specialized expert sent by the insurance company at its own expense.