Fire is one of the most common causes of damage to business-owned property.If we observe the kind of accidents / mishaps happening in warehouses / office buildings and houses, we will find that fire is the key cause for the same. Fire due to short circuits is very common. Yet, in most cases, houses and properties are not insured against fire(Details).
Fire insurance represents a contract where indemnification against the fire consequences is done by reimbursement of the damage either in installments or variable lump sums. Generally, fire insurance contract is valid for a period of one year and it can be extended from the insurance holder’s side. Moreover, it can be terminated by either side if policy expiration deadline has passed.
There is a document named “Policy of Fire Insurance” embodying the contract. When insurance holder files a claim against the fire hazard, insurance company hands over a document called “Cover Note” to the insured person after the claim acceptance. This cover note consists of an obligatory contract for the time duration of the fire hazard occurrence.