The best decision a prudent home owner can take is to opt for
UK fire insurance. The technical jargon or terms associated with
fire insurance UK, however, make it tricky for a layman to fill up the form and understand the various conditions.
What are the major terms a policyholder should know about Fire Insurance UK?
Here are some general terms used in the UK fire insurance policy that a house owner should be aware of:
Arson: An attempt to set somebody’s property on fire.
Construction Type: Comprises the material of construction, i.e., brick or wood. The owner of a brick house will have to pay lesser premium as opposed to someone who owns a wooden house since wood is more combustible.
Deductible: The amount one agrees to take while filing his or her claim.
Friendly Fire: A fire that is ignited intentionally as in a fireplace or a burner and does not expand beyond its intended limit.
Hostile Fire: A fire which goes beyond control and expands to a level that it is not supposed to. For example, if one lights a furnace at home and the fire expands to the extent that it spreads and guts the whole house to ashes. This also applies to cases where the fire becomes so hot that it becomes unmanageable for the fire extinguisher to extinguish it.
Fire Legal Liability: An individual or a company is liable to pay this amount if someone’s property gets damaged by fire caused by the former’s negligence. Rented or leased property is required to be covered, for which the owner can be sued to pay for the damages caused to the property.
Open Perils: The reasons of loss associated with fire that are included in the policy. Some exclusions are floods, terrorism, war, earthquakes and nuclear incidents.
Named Perils: The actual cause, due to which the loss occurs. Some named perils are fire, explosion, theft and lightning.
Policy Limits: The maximum reimbursement awarded in the event of damage or loss. If the policy limit for a house is the value of the house without its contents, the articles in the house are not protected by the cover. One must ensure that the policy limits are sufficient to give financial protection to any kind of loss.
Policy Declaration: The section of the insurance package that specifies the coverage, monthly premium, policy limit and deductible. It is generally on the first page of the policy package.