Fire insurance provides protection against most risks to property, such as fire, theft and some weather damage, and includes specialized types of insurance such as fire, flood, earthquake, home insurance, or boiler insurance. Property is insured in two main ways: open peril and named peril.
Fire insurance steps in America
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.
Types of insurance coverage in America
There are three types of insurance coverage:
Covering the replacement cost and paying the cost of repairing or replacing the property with a similar property and of the same quality, Regardless of depreciation or increase in value. The premiums for this type of coverage are based on the value of the replacement cost, and not on the actual cash value.
Covering the actual monetary value amount of replacement cost minus depreciation.
Pay the excess cost of replacement over coverage limits if construction costs increase.
This generally will not exceed 25% of the authorized limits.
Additional information about fire insurance in America
Usually the policy covers the entire value of the property, but it can act as insurance for initial loss when the possibility of total loss is excluded.
With regard to inventory, the company can provide the service of announcing the inventory, and the insurance amount is determined at the maximum value of the stock that the owner expects to acquire at any time once through the initial collection.
100% of the annual subscription which can be adjusted at the end of the insurance period based on the average of the monthly announcements is subject to the right to maintain the lowest subscription specified in the policy.
Emergency Coverage Insurance
In the event that the tenant contacts you to repair something in the property, such as a faucet failure or a problem with a machine within the house, it is possible through this type of insurance to cover the maintenance fees in full or in part.
Types of real estate insurance for investors
The types of real estate investments vary between contracting, construction, building and renting, and each of them has specific insurance segments. When you know the types of insurance and the characteristics of each type, you can accurately determine your need, and a professional insurance broker can also be used to determine your needs.