
Fire insurance is an insurance policy that offers a financial cushion in the event of damages caused by fire and allied perils. Since these damages often run into several lakhs of rupees, you need a high sum insured — the maximum amount an insurance company would pay in the event of a claim — to be completely secure. However, a high sum insured results in steep premiums. Thankfully, there are several ways to bring it down without compromising on property coverage and other features. What are these? Let’s find out.
Ways to Reduce Fire Insurance Premiums
Some practical ways to lower fire insurance premiums are:
- Implementing Passive Fire Protection Measures
Passive fire protection may be expensive upfront, but they can go a long way in reducing the premium of your fire insurance policy. Passive protection refers to using fire-resistant materials during building construction that reduce the spread of flames and smoke. For instance, non-combustible roofing and cement board siding can help delay the spread of fire, giving firefighters more time to respond and bring the situation under control.
That’s not all. Passive fire protection can help minimise the loss of damage and make your property less risky to insure. This can help lower premiums significantly.
- Installing Fire Protection Devices
This is another way to lower fire insurance premiums. Smart technologies and devices such as smoke detectors, fire alarms and fire extinguishers can help fight fires and keep damages under control.
They further add to your property’s security and make it less risky for insurers to insure. This can help lower premiums and ensure you get the coverage needed without burning a hole in your pocket.
- Upgrading Outdated Electrical Wiring
Faulty and outdated electrical wiring often leads to short circuits, resulting in fires. It’s in your interest to upgrade old wires with new ones that are not only fire-resistant but also help control toxic fumes from spreading thick and fast.
Surge protectors and electrical panels can help detect and shut overloaded circuits, reducing the chances of fire. These help minimise damages along with the claim amount, subsequently lowering the premium.
- Opting for Higher Deductibles
Deductible is the amount you need to pay from your pocket before the insurer pays for the coverage. Installing fire protection devices, passive fire protection measures and upgrading electrical wirings give you the flexibility to opt for higher deductibles.
Doing so can help you lower premiums significantly. However, remember that in the event of a big loss, you need to bear significant out-of-pocket expenses. So, it’s vital to strike the right balance so that you get the desired coverage without paying much from your pocket.
- Conducting Professional Fire Assessments and Certifications
Getting a professional fire risk assessment can help you identify vulnerabilities in your property that can increase the chances of fire. Implementing the suggested improvements not only enhances safety but also makes property coverage a less risky proposition for insurers. Also, obtaining fire certifications from local authorities and fire departments can help you save on premiums, as insurers value these certificates.
Wrapping it Up
As evident, lowering fire insurance premiums warrants a few smart moves at the outset. Having the right fire insurance plan offering comprehensive coverage can hold you in good stead in the event of fires and other perils causing damage to your property. With the right approach, you can get the desired coverage without bearing significant expenses on premiums.