Canada fire insurance provides protection against the risk of loss of property due to the breakout of fire. A number of variables, such as the type of coverage and its breadth, the property’s value, the risk factors associated with the place where the property is situated, etc. decide the cost of the Canadian fire insurance policy.
When was the concept of Canadian Fire Insurance introduced?
Insurance companies first began to function in Canada in 1804. In 2006, of the total insurance claims filed, 11% were related to fire. The Gore District Mutual Fire Insurance Company is the oldest Canadian fire insurance company.
What should one pay attention to while getting a Canada Fire Insurance cover?
A number of legal restrictions are involved in Canada fire insurance. For example, an act of setting the property on fire by the insured will void the contract. The same applies in the case of loss of property that occurs because of fire arising due to negligence on the part of the policyholder.
What are the exceptions to the Canada Fire Insurance Act?
As per Chapter 10 of the Canada Fire Insurance Act, the following are not included in a fire insurance Canada policy:
- Insurance falling under the categories of inland transportation, aircraft, sprinkler leakage and theft, automobile, boiler and machinery, marine, plate glass;
- Where the coverage is rent, loss of profits or charges;
- Where the hazard is an incidental peril to the coverage in contract or
- where the cover is against property insured by an insurer(/s) as a nuclear risk, as a part of a policy that covers damage to or loss of property arising from nuclear radiation or nuclear reaction and from other perils.
What is the degree of coverage of Canada Fire Insurance?
Depending upon the type of policy opted for by the policyholder, the Canadian fire insurance policy covers the property, which has been insured against fire, lightening and gas explosion. Unless it is mentioned in a particular policy, the coverage will not include any loss of property or its contents arising out of any direct or indirect contact with radioactive material as a result of fire, explosion or lightning.