What is Fire Insurance?
Fire insurance is a type of insurance in which a person insures his property and the insurance provider pays the person an amount to cover the damages to his property in the event of a fire accident during a specified time period and up to a specified amount. Usually, the term of a fire insurance policy is one year after which the insured has to renew the insurance policy. A fire insurance claim is valid only when there is actual loss and the fire is accidental instead of intentional.
Difference between Life, Marine, and Fire Insurance
Individuals and property owners in the modern world use insurance as one of the most important safety nets. Insurance is essentially a bond that you sign with a bank or your insurance provider, in which the insurance provider promises to pay you a specific amount in the event of an emergency or if you are required to pay a large sum of money to someone. In exchange, you must pay a monthly premium to the banks, which is calculated based on your package and requirements. In this way, the respective banks earn money from all of the people who have signed up for the insurance scheme, and in exchange, they pay the amounts to those who need the insurance. Life, Marine, and Fire Insurance are three types of insurance used by individuals and property owners as their safety nets.
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