Describe the various types or kinds of Fire Insurance policies

Types of Fire Insurance :-
Following are the important policies of fire insurance :

1. Valued Policy :-
Under the policy agreed value of the property is mentioned in the policy. In the event of loss by fire the insurer pays the admitted value of property. So in this policy value of property is predetermined.

2. Undervalued Policy :-
Under this policy the value of the property is not predetermined. In case of loss the value is computed by assessment.

3. Floating Policy :-
It is issued to cover the risk of various goods laying in different places. In this policy the insured amount may be changed with the rise and fall in the quantity of goods in the store.

4. Specific Policy :-
Under this policy the property is insured for a definite amount. In case of loss the stated amount will be paid to the policy holder.

5. Average Policy :-
Sometimes the insured insures the property less than the value of property. In that situation insurance company compensates the loss according to the proportion of original value of the property and insured amount.

6. Schedule Policy :-
Some people property is situated in various locations. So the policy which insure, the many properties in different areas under collective terms and conditions is called scheduler policy. Rate of premium and details are given in the same policy.

7. Standard Fire Policy :-
Such policy covers all the loss caused by lighting burning, earthquakes and floods.

8. Replacement Policy :-
Under this policy insurance company pays more than the actual value of the property destroyed by fire and also covers the cost of replacement.

9. Transit Policy :-
Transit policy is issued to transfer the goods carefully on its destination. If the subject matter is destroyed due to fire then company compensates the loss.

10. Profit Insurance Policy :-
Sometimes due to business closes for few days or for few months. Businessman looses the profit due to close of business. So this policy covers the profit which sustains due to fire. Insurance Company pays the profit on the basis of previous years average.

11. Rent Insurance Policy :-
Some times due to fire one shop or store damages. Now the owner of shop had already given.