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Fire insurance property insurance and what is the difference

Griya  |  17 November 2016  |   1167 Views

Fire insurance property insurance and what is the difference

Griya  |  17 November 2016 Fire insurance property insurance and what is the difference

RumahCom - Property insurance can protect your home from various types of risk, one of which is fire accident. However, there are also fire insurance separate from property insurance.

So, what is the difference of fire insurance with property insurance? Here's the review:

As the name suggests, fire insurance guarantees loss or damage to property caused by fire and / or other causes guaranteed under the policy. The risks guaranteed in the standard Indonesian fire insurance policy are five, namely fire, lightning, explosion, falling aircraft, and smoke.

1. Fire
There are three types of fires that are included in the protection, ie fires caused by spreading fire or self-generated heat; short-circuit; and fire caused by fire of other objects in the vicinity, provided that the fire of other objects is not a result of the risks excluded in the policy.

2. Lightning
Damage that is directly caused by lightning. Especially for electrical machinery, electrical equipment, or electronics and electrical installations, any loss or damage is guaranteed by this policy in the event that the lightning causes a fire to the objects concerned.

3. Explosion
The explosion derived from property insured on this policy or other policies that runs together with this policy for the interests of the same insured.

4. Fall of an airplane
The fall of an aircraft guaranteed in this policy is a physical collision between an airplane including a helicopter or anything that falls from it with insured property and or interest or with a building containing insured property and / or interest.

5. Smoke
Smoke that comes from property fires insured on this policy or other policies that work together with this policy for the benefit of the same insured.

Expansion of Protection
Fire insurance can also provide protection extensions, including:
• Riots, strikes, losses from misconduct and riots in accordance with the DAI version (Board of Insurance Indonesia)
• Earthquakes, fires, or explosions caused by earthquakes, volcanic eruptions, tsunamis (individual policies)
• The cost of cleaning the debris
• Landslide
• Business interruption (separate policy)
• Hurricanes, storms, floods, and water damage
• Smoke and impact of vehicles

Unsecured Risks
• Fire or explosion from self-induced fire or fire arising from the nature of the goods themselves (inherent vice)
• War damage, invasion, foreign enemy action, and other similar activities
• Nuclear reaction or radiation or radioactive contamination

Property insurance, or commonly referred to as home insurance, has a slight definition difference with fire insurance. In some companies, property insurance is differentiated from fire insurance, while in other firms fire insurance is part of property insurance.

In essence, property insurance will provide different types of protection against your property or home. The difference in fire insurance with property insurance lies in the type of protection provided.

If the fire insurance only provides protection against five things (fire, lightning, explosion, falling plane, and smoke), property insurance provides a wider protection, such as protection from floods, theft, strikes, riots, and riots. The last mentioned items are also available on fire insurance, but consumers are subject to additional premiums, while the property insurance is already a standard protection.

So, at a glance, it appears that property insurance provides wider protection than fire insurance. Therefore, the premium on property insurance is more expensive than fire insurance.

Every insurance company has a different product, some have already inserted fire insurance in property insurance, but others sell it separately. Therefore, you should ask more details about the difference in fire insurance with property insurance being sold.