Fire Insurance: Definition, Benefits and How to Claim

  Insurance is a financial product whose function is to protect future financial/financial risks from various unexpected events. Such as death, accident or declining health conditions.

And getting here more and more people finally understand how important it is to buy insurance products in order to protect finances in the future.

This makes many insurance companies participate in presenting various insurance products with various facilities, benefits and benefits to meet the needs of their customers.

One type of insurance that is currently widely used and specifically used to protect properties such as homes, offices and other buildings is fire insurance.

What is fire insurance, its benefits and how to claim it?

Definition of Fire Insurance

Fire insurance is a type of insurance that provides protection against damage to buildings or property caused by fire, lightning strikes, explosions, plane crashes and smoke damage.

In general, the object of coverage in fire insurance is property that can be in the form of buildings including furniture/equipment, machinery, stock, merchandise, and goods that are not specifically excluded from the policy exception.

The insured or user of fire insurance is:

• Individuals or companies that own residential buildings, offices, shops, hospitals, hotels, factories, warehouses and other buildings
• Home loan lender
  

Fire insurance can not only be used during a fire accident, but there are special conditions that will also provide protection for your assets and investments. For example, riots, lightning strikes, floods or the crash of an airplane. 

Benefits of Having Fire Insurance

By having fire insurance, at least you have anticipation of losses that may have to be borne in the future. Well, here are other benefits that can be felt by having fire insurance:

1. Avoiding Big Losses

By having fire insurance, the loss you have to bear is not too big. At least you only need to pay half of the cost of the existing damage, because the rest will be covered by the insurance.

2. Providing Guarantees on Goods in the House

Fire insurance also provides a guarantee for reimbursement of costs for items damaged by fire or other types of natural disasters. However, with a note that the replacement occurred due to a fire that was not due to the negligence of the homeowner himself.

3. Providing Temporary Residence

If you have fire insurance, the insurance will provide the insured with temporary residence when the insured house or building is in the process of being rebuilt.

4. Provides a sense of security

With protection from fire insurance, you also feel more secure and confident as a property owner. So, if there really is a fire when you already have fire insurance, at least there will be a replacement from the insurance that reduces the burden of your loss.

5. Expansion of Guarantee

In addition to providing standard insurance coverage, home fire insurance also provides extended coverage that includes protection against the risk of loss due to riots, lightning strikes, riots, terrorism, floods, and even plane crashes.

Of course, this situation gives you the advantage and peace of mind because disaster can come anytime and anywhere.

How to Claim Fire Insurance

To claim fire insurance, there are at least 5 processes that you need to understand, such as the following explanation:

1, Report a Fire Incident As Soon As Possible

Immediately report the incident (eg fire) to the insurance company as soon as possible. Reports can be made by letter, facsimile or by telephone or by visiting the insurance office directly.

2. Make a Loss Report due to Fire

After reporting a fire, next you must also fill out and complete a report or written statement regarding the loss or damage caused by the disaster that you experienced. Usually the forms that need to be filled are related to:

• Place, date and time of fire or damage
• Cause of fire or damage
• The amount of the insured loss is equipped with everything that is burned, destroyed, lost, damaged, and can still be saved
• Other information that according to the insured needs to be submitted to the insurer (the insurer)

Don't forget to also prepare other claim supporting documents to the insurance company. Such as notebooks, photos of losses, reports from BMG and so on.

3. Stages of Policy Identification

After the insurer gets all the reports along with the required documents. Next, the insurance company will immediately identify the validity of the policy. There are at least 3 pieces of information that will be sought at this stage, namely:

• Does the insurer have an interest in the object that is burned or damaged?
• Does fire or damage occur within the coverage period
• Whether the premium has been paid or paid.
  

4. Claim Check by Insurance Company

After the results of the policy identification are valid. The next insurance company will conduct research in the field to find out the actual events.

There are some basic information that will be explored by the insurer, namely:

• Cause of fire or damage
• Place of fire or damage
• Amount of loss suffered
• Total price of the remaining buildings/goods/machines that are not burned/damaged
  

When the claim has been deemed valid. The insurance company will notify the customer how much compensation will be paid which is the responsibility of the insurance company.

5. Claim Submission Results

After an agreement is obtained regarding the amount of compensation, the insurance company will prepare a claim payment for you. Compensation payments are made no later than the time limit specified in the policy or according to the agreement.
Additional Protection Is Important

Whether for yourself, your vehicle or your home, all of them need additional protection from insurance. In addition to giving you a sense of security, insurance also protects you from various financial risks that you may experience one day.