Homeowners Insurance

What is fire insurance?

For those unfamiliar with this service, fire insurance is a type of insurance offered by private companies to help people who have suffered damage from a fire in their properties. These can be both personal, such as apartments and houses, and business, such as a commercial room or shed, among others.

Regardless of the type of property, when carrying out a contract, any situation involving fire on the site must be resolved by the company, discussing reimbursement and other measures.

Imagine a hypothetical situation: your apartment suffers from a fire due to a leak in the building’s gas pipe. Instead of you bearing all the costs of this misfortune, the insurance will cover all expenses in whole or in part.

Is required?

Many people still have the mentality that insurance is an unnecessary expense. After all, the big goal is not having to use it, right? But this is a thought that needs to be overcome. The cost of insurance is not an expense; it is an investment in a better, more peaceful life.

In the case of fire insurance, the obligation is only for condominiums and apartment buildings. For homes, there is no obligation. But, as we said before, although it is not mandatory, it is recommended that you hire, especially in cases of rented property, because whoever should bear any, and all damage caused to the property is the tenant.

We will explain the details of this contraction in more detail later.

Fire insurance versus real estate insurance

Before we continue explaining more about fire insurance, we need to highlight an important point! Many people confuse property insurance with fire insurance. Even though both serve to protect your property, they have different functions, which cannot be confused when closing a contract.

Homeowners insurance takes care of numerous issues for your house, apartment, or another type of residence. In case you suffer from natural phenomena, such as a cyclone, a heavy rain, among others, this type of insurance provides all the necessary items such as furniture reimbursement, structural reconstruction, and the like.

However, if you have fire insurance, it only covers situations involving this type of incident. So, if your home has experienced any other misfortune that doesn’t involve fire, this service will not cover the expenses.

How does fire insurance work?

We know that many people are interested in this type of service because of the benefits it brings in the face of unforeseen circumstances. However, not everyone understands how fire insurance works and who to turn to when they need it.

Before hiring it, you need to know exactly how this service really works. This is the only way to avoid headaches, such as wasted money or something like that.

Therefore, understand here how fire insurance can help you and in which questions it will be by your side when this type of incident occurs.

Property Protection

This insurance serves as a protection of your property in the first place. Any location is subject (with fewer indices or not) to suffering some kind of problem like this. In this context, there are occasional situations when the fire is caused by some factor that is beyond the contractor’s hands and purposeful situations when the contractor leads to the fire in some way.

In short, it is nothing more than a means used to make you feel protected in case any situation involving this type of incident occurs. That’s why we say that insurance is an investment in a more peaceful life.

Reimbursement of lost materials

But how does this protection that fire insurance offers work? Depending on each model contracted, the owner or service contractor will have the reimbursement of the material lost during the incident.

Depending on the type of insurance contracted, a full refund may be available. If it is simple, cheaper, and with less coverage (coverages are the guarantee of protection against a certain event and can be, mainly, basic or additional), this return most likely occurs in a partial way. However, if you have reached a broader deal, it should be done in full.

Large Real Estate

It is also very important to explain fire insurance in large properties. Imagine that an entire residential building suffers from a short circuit and generates losses for countless apartments allocated there. How would this situation be?

The trustee, first of all, needs to get in touch with the builder of this building to find out if he has any assurance procedure. Many companies do this type of protection to avoid such misfortunes. Big stores, like warehouses, also make this type of guarantee.

If the construction company or other person responsible for the building does not have this type of fire insurance, unfortunately, the residents will not have any type of reimbursement. However, the manager himself can contact any agency that works with this type of service and hire on behalf of that location.

In summary: the main benefits of hiring fire insurance are:

  • Security and tranquility;
  • Economy;
  • Money-back guarantee;
  • Risk reduction.

These are just some of the benefits; when hiring fire insurance, you can still enjoy many others.

Rent and home ownership: who pays for fire insurance?

A very frequent question among people who are thinking about hiring this type of service is about the properties that are rented. There are two people involved in this process: the owner and the tenant. Who should pay fire insurance in a situation like this?

For you who are in a rented property, we need to notify the tenant who is responsible for hiring and paying for this service. What can happen, and much is discussed between the parties, is the division of this value if the person who is renting does not want to make himself available. However, everything takes place through conversation and subsequent registration in a contract.


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