My flat caught fire two months back. Since I had a fire insurance policy, my costs were covered. However, the flat just beneath mine also suffered some damages. Now, the occupants of that flat are asking for compensation. Should I approach my insurance company and ask them to cover their costs too? If they refuse to do so, what is the other option?

The standard fire and special perils policy, unfortunately, does not cover the liability of the insured towards the third parties. Therefore, you can approach your insurers only if you are also covered under a public liability policy. Public liability cover is available as a part of the householder’s package policy. The only other option is that if somebody else was responsible for the outbreak of fire—your housing society or builder—you may recover the cost of damages from that person and, in turn, pay the owners of the flat below yours.