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Frequently asked questions about fire insurance policies
Posted by Rumen Iliev on Nov 2, 2011
Article word count: 534 Times read: 21
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In case you want to purchase a fire insurance policy but you do not know a lot, the next few lines might answer some of the questions you might have.
Can anyone buy a fire insurance policy?
Anyone who owns a property of any kind (house or apartment) can purchase a fire insurance policy to protect their home.
Why is a fire insurance policy needed?
It is very sensible to protect yourself by getting a fire insurance policy as soon as you buy your home. You invest a lot in the purchase of a property of any kind so a fire insurance policy will ensure that you do not lose that investment in case of fire. Moreover, you can protect yourself even further by insuring the contents of your home too. This can be done by adding coverage to the fire insurance policy for the property.
Does everyone need to have fire insurance?
It is not compulsory to have fire insurance. However, in case the property is mortgaged you will need to get fire insurance because of the mortgage terms and you may only apply the insurance policy to the outstanding loan amount. However, in case the property is mortgaged to any financial institution or a bank you will also be required to have fire insurance on the outstanding amount on the loan. This is a policy called Mortgage Interest Policy or MIP.
What kinds of properties can have fire insurance policies?
1. Private apartment
In case you own an apartment in a block then the whole building is probably registered to be a Management Corporation Strata Title type of property. If this is the case with you then the Management Corporation is the one responsible for the insurance policies of all apartments. In case something happens to such a property then the Corporation is the one responsible for filing any fire insurance claims to the insurance company. In case you make improvements or renovations to the property you own, they might not be covered by the fire insurance policy provided by the Management Corporation. This means that you should get separate fire insurance in such cases and it will take care of the protection of your renovations in case of fire.
In case your property is still mortgaged and you own money to a bank then you will be required to get the MIP policy. This is so because the financial interest of the bank will not be protected by the insurance policy provided by the Management Corporation. In case there is fire that does damage to the property and the policy, which is provided by the Management Corporation, does not take care of the damage, the MIP surely will and so it will always protect the financial interest of the banking institution. In case the ones who lived in a mortgaged property cannot pay their mortgage debts because of the damage done by the fire the MIP policy will take care of that.
Author Resource:
The Danish word for fire insurance coverage is brandforsikring dækning and if you are looking for the best one for the least amount of money, visit this website. To read all about making house fire insurance claims, click here.
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