Fire-related insurance myths extinguished
Image
Generally, people are more informed about health or motor insurance. In comparison, home insurance—and to a larger extent, fire coverage—suffers from a lack of understanding. Let us clear the air on some of these fire-related insurance myths below.
Does fire coverage only relate to fire?
No. Contrary to what its name suggests, fire coverage usually cover a range of incidents—from explosions to floods to aircraft impact. The type of incidents they cover vary from plan to plan, so make sure you’re signing up for a package that is relevant to your needs. For example, if your area is prone to floods, make sure that it is included within the coverage.
Do all home insurance plans provide similar fire coverage?
Sometimes. Home insurance plans can provide 1) home contents coverage only, 2) structural coverage only, or 3) both home contents and structural coverage. Due to these variations, it is important to be clear on the policy terms and coverage, or speak to an expert to understand what you’re signing up for.
Does fire coverage kick in only if there is a fire in your insured home?
Not really. In most cases, fire coverage can cover expenses incurred by a fire that did not start in your home. If a fire breaks out in your neighbour’s house and spreads over to yours, you can depend on your insurer to cover any damages to home contents if you have a home insurance policy in place.
Does fire coverage have little importance?
Absolutely not. For many families, emergency funds may not be readily available or enough to cover all the costs of an incident. These include repair costs of any damage to house structure, replacement costs of home contents, as well as expenses spent on alternative accommodation during the repair period. Investing in a home insurance plan with fire coverage can prevent any home-related incident from becoming a huge financial burden.
Find out more about fire coverage in our home insurance policies here.
