Importance of fire insurance

The basic fire insurance policy Fire insurance covers the loss or damage to personal physics caused by fire and lighting the fire insurance policy can be added to other perils such as windstorm, hail and vandalism. With addition premium, indirect losses can also be  covered including the loss of profits and rents and the extra expenses incurred as  result of  a loss from the interruption of business.

The first scientific system of obtaining funds to compensate for fire loss was developed after the great fire of London in 1666 which devastated some 13000 building. Like other insurances, fire insurance is a trust business which provides relief to the property owners suffered from damage by fire. Even if there is not yet firing the owners can be free from tension, if the physics are insured against fire because it is the fire insurance which compensate all loss if accidental fire destroys insured physics. The must importance of fire insurance can be unsustainable, as below.

1.     Recompense: the fire insurance protects the physics against fire among insured physics any loss occurred by fire is recompensed immediately after necessary examinations.

2.     Industrial development: protecting business properties fire insurance promotes trade and industries. If damage by fire is sure to be compensated by insurer the investor can invest lots of money in the business without fear. In this way speedy industrial development becomes possible by increased investment in business sectors.

3.     Locked life: the Fire insurance is important for individual life also. One can be free of worry purchasing fire insurance policy for all his physics. Any risk of loss by fire can be transferred to insure and hence private life of people can be financially safe and sound. The  fire insurance, by which one can live happily without the mercy of others, even if most physics are destroyed by fire, because all toll are compensated by the insurance company.

4.     Social welfare: the fire insurance is more important from the nation and society point of view, too. People can live happily if their physics are insured. Even after loss from fires, people will not suffer financially. In this condition they should not be contingent upon others. At the same, theft, robbery, kill and other criminal activities are also reduced significantly.