What determines how much I pay for Fire Insurance?
Insurance companies use ‘Fire Insurance Grades’ to determine their capacities for insurance. Fire insurance grades are a measure of the capacity of the community to provide an effective level of response to structure fires (and conflagrations) that can be expected to occur based on the level of fire risk in the built environment. Numerous variables are considered in determining the fire insurance grades but the factors are generally broken down into the five broad categories: risk level; fire department; water supplies; fire safety control (including prevention and education); and emergency communications.
Canada’s system of insurance grades is often misunderstood. To learn more about ‘Fire Insurance Grades’, click here.