Australia fire insurance offers financial protection against damage caused by fire to your home, office or warehouse. This insurance covers not only the structure, but also the contents of your house or office premises. A major fire to a warehouse could damage merchandize worth millions of dollars, from which one may not be able to recover for a long time. Thus, it becomes essential for everyone to opt for protection against damage to their property in case of a fire. Fire insurance Australia also provides provisions for the cost of removing assets from the fire-ravaged premises.
Australia Fire Insurance for Homeowners: Coverage Area
Under the standard Australia fire insurance policy, the coverage is limited to the replacement cost of the damaged property minus the depreciation.
Every fire insurance policy has five areas of coverage, one of which is optional:
1. Dwelling: The main house where the policyholder and his/her family resides.
2. Other structures: Structures outside the main house, such as a garage, shed and guesthouse.
3. Personal property: The personal assets that a policyholder usually has in the home.
4. Loss of use of the dwelling: If a fire breaks out and damages your house to a great extent, you may have to seek temporary accommodation elsewhere. This would increase your living expenses. In such as case, this coverage helps a policyholder to pay for the rent for the time it takes to repair the damaged structure.
5. Endorsements: This is an additional cover that a policyholder can opt for to include expensive items, such as jewelry or furs. The amount of coverage of such items, without a special endorsement, is usually restricted in the fire insurance policy.
There could be a provision in the fire insurance policy that excludes fire caused by an invasion or any military act. Some fire insurance policies may also exclude fires caused by riots and civil commotion. Thus it is very important to read the policy documents carefully before making the selection of Australia fire insurance.