4 fire insurance myths extinguished

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Generally, people are more informed about motor or health insurance. In comparison, fire insurance suffers from a lack of understanding. Let us clear the air on some fire insurance myths below.

1. Fire insurance only provides coverage for fire.

“Most fire insurance plans cover a range of incidents—from explosions to floods to aircraft impact.”

Contrary to what its name suggests, most fire insurance plans 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.

2. Fire insurance equals to home insurance.

Not exactly. For some insurers, there are stark differences in the coverage provided: fire insurance provides coverage for structural damages, while home insurance offers a pay-out for damages to the contents of a home. However, other insurers use both terms interchangeably by merging the coverages. Due to these blurred lines, 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.

3. Fire insurance only applies if there is a fire in your insured home.

“Fire insurance can cover expenses incurred by a fire that did not start at your home.”

In most cases, fire insurance can cover expenses incurred by a fire that did not start at your home. For example, if a fire breaks out in your neighbour’s house, chances are that soot will stain your walls and furniture. In addition, smoke odour can also be retained in the curtains. In such cases, you can depend on your insurer to cover cleaning and deodorising costs if you have a fire insurance in place.

4. Fire insurance has little importance.

Incorrect. 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 fire insurance plan can prevent any home-related incident from becoming a huge financial burden.

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Still unsure about the difference between home and fire insurance? If you have any questions, feel free to reach out to us here or find out more here.