What Is Fire Insurance And Its Types

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What Is Fire Insurance And Its Types?
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(No Transcript)
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A fire insurance in Louisiana is a contract that
is made legally by an insurance company with a
policyholder, to assure, whatever property is
lost by the policyholder, during any fire
accident, will be covered/paid by the insurance
company.
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Fire mishaps take place unexpectedly and it can
not only destroy properties but can as well ruin
flourishing businesses. That is why it is
imperative to opt for fire insurance in
Louisiana. 
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However, if you already have a house insurance in
Louisiana, check out whether fire damage coverage
is there or not, because many home insurance
companies provide coverage to fire.
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The following are the factors that are taken into
consideration while finalizing the most suitable
fire insurance policy
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• The type of risk involved
• The nature of the property to be protected
• The belongings of a property
• Occupancy hazards
• Exposure hazards
• The time element
• The following are the various types of fire
  insurance in Louisiana 

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1. Valued Policy
This policy is meant for properties like jeweler,
work of arts, paintings and etc. whose value
cannot be estimated once they are damaged or
destroyed.
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That is why, the value of the subject matter is
discussed and agreed upon, at the time of taking
the policy itself and it will have no effect on
the market value at the time of loss.
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2. Specific Policy
Under this type of fire insurance, a specific
amount is agreed upon to insure the risk. For
example, if an insurance policy of 50, 000 is
taken, then at the time of mishaps, if there is
loss of 40,000,
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the amount will be covered, but if the amount
exceeds the insured amount, like 70,000 or
80,000, then the policyholder will receive aid
of only 50,000, not a single penny extra than
what was insured.
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3. Average Policy
This policy is called so, because the average
clause fits in. This clause is meant for
penalizing the policyholder for taking insurance
amount less than the property value.
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For example, if a person insures 20,000 for a
property worth 40,000 and during fire accident
s/he incurs loss of 60,000, then s/he will
receive only 10,000 from the insurance company.
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4. Floating Policy
This type of fire insurance in Louisiana is
applicable for covering up risk of goods and
properties lying at various location.
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However, all the belongings should belong to the
same policyholder. For example, a businessman
with import and export business can avail it.
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5. Comprehensive Policy
As the name suggests, it covers all types of
risks fire, explosion, lightening and etc.
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6. Consequential Loss Policy
This policy can be opt for, to cover
consequential loss or loss of profits. For
example, due to fire if a factory needs to be
relocated, production will automatically go down
until everything gets settled. This one will come
handy in such situations.
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7. Replacement Policy
This fire insurance in Louisiana will ensure the
cost of replacing a property that got damaged in
fire. However the replacement will be done as per
the ongoing marketing value of the particular
belonging.
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e-insurance-and-its-types/
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Bonano Insurance Agency
Phone [phone]
Website www.bonanoinsurance.com
Address 1109 US-190 BUS, Covington, Louisiana
70433, USA