Fire Insurance UAE
What is a Fire Insurance?
Importance of Fire Insurance
The importance of fire insurance arises due to the fact that fire accidents can be abrupt, instant, and destructive. They can burn down and completely destroy your long-standing business and personal assets in a short time span.
Industries are highly vulnerable to fire accidents due to short circuits, machine operations, and human error. They invest millions of dollars in their business operations. A small fire accident can set the business back by several years. A large fire outbreak may lead to bankruptcy or the complete closure of a business.
A comprehensive fire insurance policy offers financial security to your properties damaged or lost due to fire accidents. It compensates you for the losses suffered at your business and residential premises. You can restore the building and replace other assets wrecked by fire.
What is Covered Under Fire Insurance?
Fire Insurance Dubai typically covers loss or damage to your property due to fire accidents and lightning. But you can extend the insurance coverage for the following risks by paying an additional premium.
- Explosions and spontaneous combustion
- Bursting or overflowing pipes
- Sprinkler leakage
- Floods, storms, and tempests
- Aircraft damage
- Impact damage
- Earthquake and volcanic eruptions
- Subsidence and landslip
- Riots, strikes, and malicious damage
The fire insurance policy may also cover the fire extinguishing charges, expenses for the removal of debris, and loss of rent due to a fire accident.
What is Not Covered Under Fire Insurance?
Fire Insurance UAE does not cover losses caused by factors other than fire. The major exclusions of fire insurance are listed below:
- Loss or damage due to theft occurring during or after fire.
- Burning of property by order of any public authority.
- Loss or damage caused by pollution or contamination.
- Loss or damage by subterranean fire
- War, civil commotion, or any act of terrorism
- Radioactivity and nuclear energy risks
- Date recognition
- Property damage to data or software
Who Needs a Fire Insurance Policy?
Manufacturing firms and industrial units.
Shopkeepers, large godowns, and warehouses that stock materials.
Hotels and restaurants.
Hospitals, clinics, and other healthcare service providers.
Transporters and C & F agents.
Homeowners and owners of content inside a building.
Any other individual, organization, or institution who is exposed to the risk of loss or damage due to fire accidents.
Benefits of Fire Insurance
Fire insurance compensates the policyholders to restore or replace all the assets that are damaged or destroyed by fire. This includes buildings, plant & machinery, office equipment, inventory, and house property.
The policy seeks to reinstate the insured to the same position that existed prior to the fire accident.
Several other perils, such as explosions, floods, storms, riots, strikes, and malicious acts, are also covered by fire insurance.
Add-on covers help to extend the coverage to other expenses such as removal of debris, fire brigade charges, loss of income, etc.
Fire insurance provides greater security to the banks & financial institutions that provide loans to homeowners and business entities.
A fire insurance policy offers a deep sense of security and peace of mind to individuals and businesses that make huge investments in physical assets.
How to Buy Fire Insurance Online?
Step 1
Visit the official website of Prominent Insurance Brokers. Enter your details in the online get quote form for Fire Insurance UAE.
Step 2
Once you provide all the required details in this form, click on the ‘Submit’ button.
One of our executives will contact you immediately. You will be guided by our team to buy the best fire insurance plan in the UAE. You can make the payment online.
You can also click on the WhatsApp icon on this page and chat with our team members. You will be guided step-by-step to buy the policy online.
Frequently Asked Questions on Fire Insurance in the UAE
Who can purchase a fire insurance policy?
Any person (individual or business) who has a financial interest in the property to be insured can buy fire insurance coverage. The person must directly suffer a loss if the property is damaged or destroyed due to a fire accident.
What is the tenure of a fire insurance policy in the UAE?
Fire Insurance UAE is typically issued for a period of one year. The policy has to be renewed every year.
What is the principle of indemnity in fire insurance?
The principle of indemnity states that the insured person (policyholder) cannot make a profit out of the insurance contract. Irrespective of the sum insured, only the actual loss will be compensated by the insurance company. No fire insurance claim will be accepted if there is no loss or damage.
Should I buy a fire insurance plan if I already have home insurance?
This depends on your existing policy. A comprehensive home insurance plan usually covers loss or damage due to fire. But a basic plan may not offer this coverage. You can either opt for a standalone fire insurance policy or an add-on cover for your home insurance.
Disclaimer: The fire insurance or plan may have limitations, exclusions, and other terms and conditions that may affect coverage. It is important to carefully review policy documents to understand the terms and conditions that apply to the policy & make sure that it meets your specific needs and requirements.