Fire Also Causes Financial Devastation
The number of fire break-outs in Noida has been rising at an alarming rate. While we feel sorry for the victims, we often have it in the back of our minds that it will not happen to us. The question to ponder over is: are we prepared to handle such a situation if it arises in our society? Unpleasant as it may sound, most housing complexes are not prepared, and some are not even thinking in that direction. It is always better to face the situation rather than burying our heads in the sand and pretending all is well. Mere infrastructure does not prepare us for the situation. Regular workshops or drills should be held to make residents aware of the necessary steps to be taken. This is relevant given the numerous cases of fire breakouts in Noida, especially in multi-story buildings. The essential measures do not end at the installation of fire equipment. Regular maintenance is of utmost importance. There have been instances when the system was complete but of no use in case of a fire. At the time of construction of flats in societies, builders charge a heavy amount for fire safety, which is included in the total cost of the flat. They install the fire system as it is mandatory for building clearance from the fire department. However, the department does not bother about the quality of the system. To this extent, things are tolerable. However, it becomes horrible when people start living in the buildings, as nobody knows how to operate the system in case of a fire. As a result, materials like hose reels are used for gardening, space is used for keeping waste material, and fire extinguishers are not refilled after the first filling. Fires can result in significant financial losses too. Rebuilding a home or replacing equipment and inventory after a fire can be extremely costly. Fire insurance can provide the necessary financial support to recover and reduce the financial burden. While some Apartment Owners’ Associations (AOAs) or Resident Welfare Associations (RWAs) may have group fire insurance for their apartments or cooperative societies, it may not be sufficient. It’s advisable to have individual fire insurance policies for flats in multi-apartment buildings based on the realizable value, which is the net amount received from selling the flat. We have seen cases where fires have spread within the towers, affecting multiple flats. If the fire department inspects and asks the AOA/RWA/builder to dismantle and rebuild the structure, it could take more than two years to rebuild the flats. In such a scenario, a flat owner might decide to purchase a new flat elsewhere. In this case, the insurance company would pay the realizable value and sell the flat after the reconstruction. Before purchasing an insurance policy, it’s crucial to thoroughly read and understand the terms and conditions, including the excess clause and exclusions.
