What is a fire insurance policy?

What is a fire insurance policy?

What Is Fire Insurance? The term fire insurance refers to a form of property insurance that covers damage and losses caused by fire. Most policies come with some form of fire protection, but homeowners may be able to purchase additional coverage in case their property is lost or damaged because of fire.

What is standard fire policy?

Standard Fire and Special Perils Insurance is a traditional cover that offers cover against fire and allied perils which are named in the policy. The policy can cover building (including plinth and foundation), plant and machinery, stocks, furniture, fixtures and fittings and other contents.

How is sum insured for fire insurance calculated?

The insurer after estimating the construction cost and depreciation revises the following proposal: The cost of material for similar buildings in current times: Rs. …The cost of labor for the construction of the same: Rs. …Depreciation factor for the building life at 5% p.a.: 2.6533. More items… • Feb 12, 2022