6 Things You Should Know About Fire Insurance

Fire is unpredictable, it spreads in seconds and can decimate homes, offices and take life in the blink of eye minutes. The ensuing damage from a fire outbreak is in many instances total destruction and is a major cause of property damage.

There is a level of risk attached to every human activity and the probability of accidental loss or damage to physical assets and third parties should never be overlooked. The harmattan season is in full swing and the dry winds exacerbate fire incidents.

This morning (December 19, 2018), Abule Egba community in Lagos experienced a serious fire outbreak. According to reports, the fire started around 3:30AM. In December 2006, a serious fire outbreak occurred in the same location and it claimed lives and damaged numerous properties.

In 2014, the Federal Fire Service (FFS) via their Data collation Centre reported that Abuja and Lagos alone recorded 669 fire incidences where 288 lives were lost, 7 people saved and an estimated property loss of N35.562 billion and property worth N7.743 billion was saved.

The Director, Lagos State Fire Service, Mr. Rasak Fadipe, said that the state fire service recorded 1,273 fire calls in 2017 out of which 260 were rescue calls, 21 were building collapses and 105 false calls. He also said that about N99.5 billion worth of property was saved while property valued at an estimated N16.5 billion was destroyed.

In the first quarter of 2018, the Nasarawa State Fire Service recorded 12 fire incidents that claimed 25 lives. According to Alhaji DogaraDalhatu, the State’s Chief Fire Officer, property worth about N3.2 million was lost to fire-related incidences while the fire service saved property whose estimated value stood at N206 million.

In August 2018, the Federal Fire Service through the Controller-General of the service, Joseph Anebi unveiled a Fire Alert System Application, a mobile app to reduce the response time of firefighters to fire outbreaks in the country. Despite the above, Insurance is your best way to provide an adequate avenue for a soft landing.

Here are some things that you should know before getting a fire insurance policy

1.Know Your Property Value – The first thing you will need to know is how much your home is worth, but also how much your possessions are worth. You should update this figure every year (or 6 months if you renovate or buy a new property).

Once you have a good idea of the monetary value of your home and your possessions, then you’ll want to choose a plan to adequately covers this amount.

Related Content: Everyday Life and Insurance

2. Get Complete protection – The next thing you need to do is choose the right package for your needs. We recommend complete protection. A fire insurance policy offers protection against damage or destruction that may be caused to movable or immovable property due to fire or other perils.

3.Ask for The Other Perils Covered Under the Policy – In addition to fire, there are various other perils which are also covered under a fire insurance policy. 

4.Perils Not Covered or Exclusions – While it is important to know what is covered under a fire insurance policy, it is equally necessary to understand what it is not.

5.Carefully Review Your Policy with Your Broker – Review your fire insurance policy annually to ensure that it covers all your buildings and locations.

6.Underinsurance Is as Bad as No Insurance - If you underinsure your property, at the time of any loss or damage, you will be liable for the extra losses upon receipt of your compensation. 

Your home and business are the results of your efforts, and therefore, it is indispensable to secure it properly. Buying fire insurance is the right step that you can take towards this direction.

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Insurance Brokers of Nigeria Limited,
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Tel: 0700 -CALL- IBN (0700-225-5426)
Email: info@ibn.com.ng 

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