The steps for how to take fire insurance policy are given below:
- Selection of company: Firstly, the person who wants to take out a fire insurance policy has to select the insurance company to whom the insurance will get affected. The selection of the company is important to step as it ensures guidance and counseling in loss prevention.
- Proposal form: After the selection of the company, the next step is to fill a proposal form. The proposal form contains all the details of the purchaser of policy like name, address, etc. And the proposal must be filled with material facts and details about the property must be mentioned properly.
- Survey of the property: The property is surveyed by qualified experts who inspect the property and determine the risk involved in the property. It is on the basis of the report company accepts or rejects the proposal form.
- Acceptance of proposal form: If the company is satisfied with the surveyor report, then the company accepts the proposal and fulfill all other formalities.
- Fire insurance policy: Later on, the insurance company provides a fire insurance policy and sends it to the insured. And it contains the insured name and all the details. It contains all the terms and conditions regarding policy.
- Term of policy: The term of a fire insurance policy depends upon the needs of the insured. The fire insurance policies are insured for one year known as Long term policy and for a shorter period than one year is known as small term policies.
Renew of policy: Generally, the fire insurance policy is issued for one year. The insurer will give Renewable notice to the insured before the expiry of the policy. Then, the insurer will give premium and the policy may be renewed on the payment of a fresh premium.
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This article is written by Vartika Chandwani and edited by Rupreet Kaur Dhariwal.