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Can Fire Floater Policy be issued for covering stock lying at Shop and Godown

Can Fire Floater Policy be issued for covering stock lying at Shop and Godown?

Mar 23, 2016 by Sumit B, Gulbarga  |   General Insurance

The answer is yes. You have to choose between a declaration or a floater fire policy depending on your business needs. To avoid the need to adjust the sum insured according to the changing stock value, a stock declaration policy can be taken. If you have multiple locations where stocks are kept, then a floater policy can be taken. Floater policies will help to cover your whole stock irrespective of the locations of your shops / warehouses. Single sum insured is applicable for all stocks in all locations. However, please remember that in a floater policy you have to declare all the different locations that you want to covered under your fire insurance policy. Unspecified locations are not allowed. If you want to add a location to your policy, you should inform the insurance company and you will have pay the additional floater as premium. Please note that, there have multiple instances of disputes with the insurance companies in the past, when new locations were added in floater policies. In most cases, the repudiation and disputes thereof were with respect to the premiums paid with respect to stocks covered under different locations. Therefore, you should be very clear about the terms and conditions of your policy. You also ensure prompt and clear written communication with the insurance company whenever there are changes to your insurance needs.

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