Do you need fire insurance?

Your business or your home is considered one of the most substantial investments you will ever make in your lifetime. Making sure that you have adequate insurance to protect them from fire destruction is crucial. When purchasing standard fire insurance policies, you may also inquire about coverage for other causes of loss such as earthquake and typhoon.

You may acquire fire insurance coverage two ways: standard fire policy or homeowner’s policy. A standard fire policy will only cover your home from damage caused by fire alone. A homeowner’s policy will not only cover damage caused by fire but other causes such as earthquake, vandalism, malicious mischief, civil commotion, strike, and riot. A standard fire policy will cover the structure of a home. If there are other structures such as gazebos or garages that are not a part of the covered dwelling, it may or may not be covered under your policy. Unless a customer requests for coverage, chances are the contents of your home are not covered.

In order to determine the premium of your fire coverage, your insurance agent will ask for the value of your home. If you wish to have your contents covered, you will be asked to gather a full inventory of each item you wish to have covered followed by a receipt or an estimated value.

According to the Federal Emergency Management Agency and the U.S. Fire Administration, there has been a steady increase in the number of home fires caused by electrical malfunctions, cooking, and personal smoking acts.

Between the months of January and February of 2012, there have also been a number of structural fires reported to the Department of Public Safety in the CNMI. Some of the fires reported were suspected arson cases. Fire losses caused by arson are not uncommon. In fact, between years 2005 to 2009, structural fires caused by arson were responsible for over $1.9 billion in direct property damage and an estimated 390 deaths.

Home fires are inevitable. You are not able to predict when or if you will become a victim of a fire breakout. Investing time and effort to reducing your risks of a total loss will be worth your while. Some of the steps include installation of smoke alarms and water sprinklers, having adequate amount of fire extinguishers, reducing structural exposure to carbon monoxide, and having someone stationed at home at all times to reduce chances of arson. [I][B](Pacifica Insurance)[/B]

For more information on fire insurance, call Pacifica Insurance Underwriters, Inc. at 234-6267 or visit their office located at Joeten Center in Susupe. You may also visit www.pacificains.com or send an inquiry via email to piui@pacificains.com. Pacifica Insurance Underwriters, Inc. is a general agent for Century Insurance and Tokio Marine Pacific Insurance Limited.[/I]