Whether shopping for insurance for your Austin, TX home or business, you need fire coverage. At Southwest Insurance Center, we want you to understand the diversity of fire insurance. You might think you can just buy a policy, but you need to consult with an agent first because so many different types of fire insurance exist. This blog helps you get started choosing the right one for you.
Adjustable fire insurance policy: Retail businesses use adjustable fire insurance to insure their stock. When the number of stock changes, so does the insured amount. The agency calculates the premium by the amount insured and the change in the insured amount.
Average policy: Essentially, you have a deductible with the average policy. Both you and the insurance company ear part of a loss. If you file a claim, the insurance company uses the following formula to calculate it:
Claim= (insured amount / value of property) * actual loss.
Blanket policy: Insures multiple properties under one policy.
Consequential loss policy: Compensates your business for the loss incidental to the fire, such as renting temporary offices and paying salaries.
Comprehensive policy: This covers other perils, too, such as looting, arson, rioting, civil unrest, wars, strikes, unavoidable accidents, etc.
Declaration policy: This insurance covers stock of a maximum value. You pay three-fourths of the premium when you obtain the policy. At the outset of each month, you declare the value of the business’s current stock and, if a fire occurs, the insurance company makes your compensation on the basis of declared value.
Excess policy: This supplementary policy covers additional risks. If your business’ stock frequently fluctuates this policy covers the amount above that covered in the main policy.
Floating fire insurance policy: This policy type covers your business’ stock and equipment at your main location, other locations, and in storage.
Reinstatement policy: Rather than a reimbursement check, this policy type replaces the insured goods lost in the fire.
Specific fire insurance policy: You only get reimbursed for the actual damages up to the insured amount with this policy.
Valued policy: Regardless of the cost of damages, this policy type pays the full value of property fixed at the purchase of the policy.
Valuable fire insurance policy: Regardless of the cost of damages, this policy type pays the actual current market price of the property insured in the policy.
Contact us at Southwest Insurance Center to find the right fire insurance policy for your Austin, TX business. Let us help you determine which policies would best serve your business needs.