What is the result of inadequate fireproofing on insurance policies?

Inadequate fireproofing can lead to increased premiums on insurance policies because it raises the perceived risk associated with the property. Insurance providers assess the potential for fire damage when determining premiums, and properties that lack sufficient fireproofing measures are viewed as higher risk. This is due to the increased likelihood that fire could spread quickly and cause more extensive damage to the structure and its contents.

As a result, insurers may adjust the premiums to reflect this heightened risk, leading to a financial burden for the property owner. Proper fireproofing serves as a protective measure, not only for the physical structure but also for managing insurance costs, as it can mitigate potential damage and thereby reduce liability from the perspective of the insurer.