Fire Insurance is certainly a must-have. If your business has any kind of premises (building, godown, store etc), a plant (or machinery of any kind), or inventory then it is Fire Insurance that comes to your rescue and saves you from a lakhs and crores of losses.
However, it is not all a pretty picture. There are certain cases when your Fire Insurance claim application can get REJECTED outright, leaving you with nothing but financial and emotional devastation.
But how do you dodge such instances?
Today, J insurance, the best fire insurance brokers in Delhi are going to educate you on EXACTLY that!
Fire Insurance is a sensitive topic.
As a businessman, you depend on fire insurance but insurance companies can secretly make clauses for exclusions that a normal business owner doesn’t have time to spot.
So being your reliable insurance partner, J Insurance today, presents you with 10 cases when your Fire Insurance claim is very likely to get REJECTED!
1. Faulty design with substandard materials: A loss of the insured property due to fire that is directly linked to the faulty or defective design due to usage of sub-standard materials is outrightly rejected for the claim settlement.
2. Natural Weathering: Any loss that occurs due to natural weathering that causes gradual cracks also makes your insured property rejected for claim settlement.However, your personal attempt to restore the property from such weathering enables you to claim settlement in the event of a loss.
3. Electrical or mechanical fault: If we are talking about machinery of any kind here and the damage that has occurred is due to an electrical or mechanical fault halting the machinery BUT NOT STARTING A FIRE then that particular loss or damage is not admissible and therefore will not be covered in your insurance claim.
4. Sub-standard Plumbing: As the owner of the insured property, if the Automatic Sprinkler Installations are installed with sub-standard plumbing, and there is an internal seepage or a leakage of any kind resulting in damage due to fire then in that case also you are no longer entitled to receive a claim settlement.
5. Legal Dispossession: Any permanent or temporary dispossession of a property due to an order by governing authorities.
6. Not taking precautionary measures: Taking precautionary measures is really the most fundamental effort that Insurance companies expect you to take.
To limit loss from a fire accident, proper fire preventive measures like Fire Extinguishers, Sprinkler Systems, Fire Alarms, and Fire Hydrants are considered positively by insurance companies and lower the amount of your premium amount. Plus they also reduce your chances of your claim getting rejected.
That’s one!
Other than that, during the event of a fire, insurance companies also expect you to make reasonable efforts to curb the loss from fire. For eg: Call the fire brigade for help immediately.
7. Zero Insurable Interest: Your insurance company may also completely reject your claim for damages from the fire if the insured (you) no longer has the insurable interest in the property. In simple words, if the damage does not affect you in any way then you no longer have the right to receive the claim amount.
8. Contents under the insurance policy: Under a certain insurance policy, you will have to be mindful of the contents that are covered in your insurance policy. For eg: In your policy that covers your building only covers the structure of the building and not the contents that the building contains. The content (let’s say stock/inventory) has to be covered separately.
9. War & Nuclear Attacks: If the country goes into war and your property suffers damage that destroys it completely, doesn’t matter how unfortunate it may sound, the insurance policy does not provide a claim for such losses. Nuclear attacks are also subject to the same condition.
10. Burglary & Theft: Any kind of burglary, housebreaking, or theft is also not usually covered in a fire insurance policy. However, Riots, Strike and Malicious Damages are still covered but keep in mind that burglary or theft is not. Both of these are special perils and are basically add-ons to a Fire Insurance policy that you can get covered for an additional amount.
So there you have it! These are the 10 cases when you don’t get any claim settlement for any loss due to fire. Most of these are under your control and you can make sure to avoid them so that these instances don’t form in the first place.
Remember, every Fire Insurance policy has its moment of truth when the damage occurs and settlement is needed, so you have to make sure that you buy the best insurance policy that offers maximum coverage.
You can do that on J Insurance. J Insurance is a simple platform that allows you to choose, compare, and buy Fire Insurance and all other kinds of business insurance in one place.
Our online and instant quote generation system doesn’t keep you waiting and saves your time. Our claim settlement ratio is at 95%. This makes us one of the best Fire insurance brokers in Delhi.
And on top of that our agents thoroughly educate you on what to do & what not to do when you are actually buying the insurance product. So if you’re a business owner looking for an insurance policy now, then explore all the best options here.
We hope this post gave you some valuable information.
For more such eye-opening info keep following Jinsurance.in
