How to Protect Your House by Home Insurance? **

You really need insurance services i.e. car insurance, home insurance or namely fire insurance, life insurance and so for. Why we must buy insurances? We were created to love our property or treasury. Then our instincts push to develop and maintain the properties of all possible disasters that cause loss or reduction in property. But the problem, sometimes we are not powerless against nature disasters or crimes. To anticipate losses or damages caused by these threats you need insurance services.

No one want lossing of his property, but an unwanted disaster often occurs (i.e. natural disasters, human error, crimes and fires) and cause financial losses that are too large if it should be borne alone. For that purpose then you need insurance that will take over the risk of such losses (Transfer of Risk). You still keep your comfortable life after lossing of your property by insurance

Fire Insurance, in US usually called Home Insurance, is one of general insurance products that will replace the losses due to building damage caused by fire, falling aircraft, lightning, explosion and smoke. Coverage is given to buildings, homes, schools, offices, hotels, hospitals, factories, shops and other buildings following contents (like furniture, machinery, raw materials, finished goods et cetera).

Fire Insurance Risks guaranteed there are 2 major parts namely :

1. Standard Fire Insurance
2. Additional Risks Warranty

A. Warranty Standard Fire Insurance

Home insurance policies with standard warranties in Indonesia is fire insurance policies which contents of the wording policy must follow standard fire insurance policies in force in Indonesia (PSAKI).

Warranty replacement of losses in the standard fire insurance covering risks :

- Fire caused by the fire itself, errors waiter, neighbor, robber, or other causes.

- Lightning : Damages of property due to Lightning insured.

- Explosion : All kinds of explosions that caused fire, and out of
the exceptions or explosion caused by nuclear power.

- Aircraft Fall : Damage and / or losses on insured property due to the Fall of
Aircraft or objects falling from Aircraft.

-    Smoke        : The smoke that comes from property and or insured interests
                            under the policy or other policies that run a series with this policy
                            for the same participants.

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Additional Perils Warranty

The following causes of Loss are additional risks warranty that can be covered :

Riot, Strike
Terrorism

Storm, Flood, inundation
Impact damage
Malicious damage
Subsidence, landslide
Bursting or overflowing of tanks
Missile Testing Operations
Bush fire etc.

Exclusions

The following are excluded from insurance coverage :

Loss or damage caused by war, civil war and kindered perils
Loss or damage caused by nuclear activity
Loss or damage to the stocks in cold storage caused by change in temperature
Loss or damage due to over-running of electric and/ or electronic machines

B. Simulation of Standard Fire Insurance

Here is standard closure without expanded perils covered. Suppose a dwelling house with the following details :

Estimated value of building (minus the price of land) IDR. 500.000.000 ,-

The contents of the building (i.e. Furniture, Electronics etc.) IDR. 100.000.000 ,-+

Insured Value IDR. 600.000.000 ,-

Basic Premium : IDR. 600 million x 0.058% = IDR. 348.000, -
Policy Fee and Stamp : IDR. 34,000, -

Premium Paid = IDR. 382.000, -

Claims In the event of a fire loss covered under the fire insurance policy, the Insured shall immediately give notice there of to the insurance company. Within 15 days of the occurrence of such loss the Insured should submit a claim in writing giving the details of damages and their estimated values. Details of other insurances on the same property should also be declared.