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Fire and property insurance in the USA

Fire insurance offers protection against most risks to property, such as
fire, theft, and some weather damage. This includes specialized types of
insurance such as fire, flood, earthquake, home or boiler insurance. Property
is insured in two main ways: open peril and named peril.


Fire and property insurance in the USA

Open risk (PAR) covers all causes of loss not specifically excluded in
the policy. General exclusions in open risk documents include damage caused by earthquakes,
floods, nuclear accidents, acts of terrorism, and war.


 Named perils require that the
true cause of the loss be listed on the insurance policy to be issued. The most
commonly named hazards that cause damage include fire, lightning, explosion and


When you get an insurance policy, the maximum amount of compensation
that the insurance company will pay for the particular damage or event is the
sum insured specified in the policy.


Fire insurance in USA

The security deposit may need to be reassessed depending on the rising
price of homes in the neighborhood The amount must be consistent with the
actual reconstruction value of the insured home. In the event of a fire, the
content of the home equipment is tabulated as a percentage of the home's value.


In the case of high-value items, the insurance company may require that
these items be covered separately from other household contents. Your last
coverage option is to make the alternative living arrangements listed in the


If the property damage caused by a covered loss prevents the insured
from living in their home, the policy can afford to arrange alternative living
expenses (such as hotel and restaurant costs) for a specified period of time to
compensate for the "loss of use" of the home until they can go home .


Additional cost of living limits may vary, but is usually set at up to
20% of the housing coverage limit. The insured shall consult with the insured
(insurance company) regarding the report on the appropriate coverage and determining
the appropriate coverage limits.


Fire insurance in America

The next step includes determining the amount of insurance and its
details in the sense of determining the value of assets, machinery and
inventory, and after completing that step, the customer or the factory owner is
asked a specific question, which is whether the factory is currently operating
or stopped working?


A suspended or closed factory has a higher risk because in that case it
will be neglected and there is no interest in it, which worries the insurance
company, especially since a fire may break out and the factory owner will
demand compensation to pay certain debts such as his debts to banks.


Note that the closed activity or the factory that is not working and
stopped working, the insurance companies refuse to cover it or issue an
insurance policy for it.


On the other hand, if the factory is operating, in that case the next
step begins, which is to inspect the factory before issuing the insurance
policy. The inspection is carried out through the specialized expert sent by
the insurance company at its own expense.