Did you know that thousands of fire accidents are reported each year, and 60% of these are from residential premises? Yes, you heard that right! Yet most of us do a double-take when it comes to erecting fire insurance owing to numerous myths.
So, let’s debunk these myths to understand the importance of the crucial checklist item- fire insurance.
- Fire Insurance Wraps only fire – This is the most common misapprehension that fire insurance covers only the damage caused to your property due to fire. You will be amazed to know that various perils including explosions, lightning, aircraft impact, earthquakes, and floods are covered in this insurance without any additional charge. For instance, a family living in a flood-prone area can benefit from this policy.
- Fire insurance applies only if there is a fire at your home – Not exactly! It is astounding that fire insurance covers the damage caused by a fire that did not even occur at your house. Even if a fire breaks out in your neighborhood and the soot causes damage to your property, you can completely rely on your insurer to cover cleaning costs if you have fire insurance at your place.
- Fire insurance is costly and has little importance – Fire spreads at a very rapid speed and can happen anywhere at any time. It can engulf the entire property within minutes. Thus, causing tremendous loss to the property. The emergency funds may not always be available to cover all the costs of an accident. Investing in a fire insurance plan is always a wiser move to prevent a huge financial burden during any home incident. In comparison to the value of the property, fire insurance premiums are generally not costly and easy to afford.
- Fire insurance is of no need if your house is free of all the dues – Yet another misinformation that should be debunked. There is no mandatory law to buy fire insurance. Some banks do ask to buy one when you take a home loan. A property owner who is utterly free from paying any further home loan has a choice when it comes to buying fire insurance. So, people often neglect it. Besides the fact that there are no necessary implications imposed by the law for purchasing this insurance, it is still important for every homeowner to have fire insurance so that he is not out of pocket if any fire accident takes place and causes complete damage to his property.