Understanding Fire Insurance Cover in Kenya;
Fire insurance Cover in Kenya is property insurance policy that covers damage and losses caused by fire. The purchase of fire insurance in addition to homeowners or property insurance helps you to cover the cost of replacement, repair, or reconstruction of property, above the limit set by the property insurance policy.
What is covered Under Fire Insurance Cover in Kenya?
The Fire Insurance cover is an extension of the basic cover and will extend to include the following additional covers: Riot & strike, malicious damage, explosion, special perils, earthquake & bush fire
Fire arises from various insured perils and causes damage to assets. The fire policy issued by most insurers covers fire damage brought about by perils of nature such as earthquake, floods, storm, tempest and lightening to name but a few.
Covered social perils including riot, strike civil commotion and malicious damage such as arson. Other causes of fire are electrical faults, and explosion. Property may suffer loss from aerial falling objects such aircraft.
The policy is suitable to cover business assets such as buildings, stocks in trade, work in progress, contents, plant and machinery. Fire is indiscriminate and devours anything in its path once it starts and hence the sum insured has to be appropriate and commensurate with the risk that the insured is exposed to
How Fire Insurance Policy in Kenya Works
Fire insurance covers a policyholder against fire loss or damage from a number of sources. Sources include fires brought about by electricity, such as faulty wiring and explosion of gas, as well as those caused by lightning and natural disasters.
Most policies provide coverage regardless of whether the fire originates from inside or outside of the home.
The limit of coverage depends on the cause of the fire. The policy will reimburse the policyholder on either a Replacement-cost basis or an actual cost value basis for damages.
If the home is considered a total loss, the insurance company might reimburse the owner for the house’s current market value.
Typically, the insurance will provide a market value compensation for lost possessions, with the total payout capped based on the home’s overall value.
The opinions expressed in this publication are those of the author. The full information of the cover is contained in the policy document. The designations employed in this publication and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of GA Insurance concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers.