Posted by new trader in
Fire Insurance
Fire insurance typically provides protection only for dwelling (home) without medical expenses. It covers only the structure itself without covering personal belongings. It covers against of major perils such as fire and water. Additional coverage can be added to properly protect your property.
A fire at a business can devastate a business. The structure may be damaged beyond repair. Business revenues are disrupted as the business cannot remain open. In the United States in 2006 there were 1.6 million fires reported resulting in $11.3 billion in direct property loss. It is a risk that must be insured against.
Most property insurance policies and business owner policies cover fire losses. Most business property insurance policies are broad form policies. These policies list a number of perils that are covered by the policy and exclude perils that are not covered.
However, fire insurance can be purchased as a specific peril policy or the coverage increased by a specific endorsement. It is important for the business owner to understand what is not covered under a traditional broad form policy and ways to increase coverage. It is important to review what are appropriate considerations when reducing premiums and what are not effective ways to save premiums.