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Fire insurance Policy

Fire is a very common peril which causes tremendous loss. As such, an insurance policy is required to cover this common peril. A fire insurance policy is designed to compensate against losses caused due to a fire. The policy has a wide scope of coverage and small as well as big businesses buy fire insurance for protecting their interests.

Fire insurance policies in India, usually, come as a Standard File and Allied Perils policy which covers not only damages caused by fire but other damages caused due to allied perils. The common perils covered under this fire insurance policy include the following:

  • Fire
  • Lightning
  • Explosion or implosion
  • Damages due to riots, strikes and other malicious activities.
  • Storm, Cyclone, Hurricane, Typhoon Tempest, Tornado, Flood and Inundation (also called STFI cover)
  • Landslide and rockslides
  • Damage due to impact by any road or rail vehicle or animal
  • Missile testing operations
  • Leakage from automatic sprinklers, etc.

There are some exclusions of standard fire insurance policy. These exclusions include the following:

  • Any loss or damage caused due to war or related perils
  • Loss or damage caused directly or indirectly by a nuclear peril
  • Any loss, damage or destruction caused to a property due to pollution or contamination
  • Any type of consequential losses
  • Earthquakes and related perils. However, by paying an additional premium, a fire insurance policies cover can be widened to include damages caused due to an earthquake.

Fire Insurance Coverage

A fire insurance policy covers various aspects of a business:

  • Buildings which includes office space, manufacturing units or warehouses.
  • Plant and machinery
  • Stock of the company both finished goods and work-in-progress
  • Land
  • Furniture and fixtures

Extensions available in a fire insurance policy in India

Besides the regular coverage features available with almost all policies, there are some extensions too which can be bought by paying an additional premium. Some common extensions available for fire insurance claims include:

  • Coverage for terrorist activities
  • Removal of debris after a fire
  • Fees payable to architects, surveyors or consulting engineers if it exceeds 3% of the claim
  • Fire due to earthquake
  • Spoilage of goods because of a damage
  • Damage of stocks which were held in cold storage
  • Damages suffered due to forest fires or bush fire
  • Losses suffered due to molten metal spillage or impact damage
  • Any omission to insure additions, alterations or extensions
  • Loss of rent, etc.

Types of fire insurance policies

There are different types of fire insurance policies available in India. Some popular ones are:

  • Specific policy - a policy covering a specific amount of loss.
  • Floating policy - a policy designed for goods lying at different locations
  • Valued Policy - a policy with a fixed benefit payout irrespective of the amount of loss.
  • Average Policy - a policy where average clause applies
  • Consequential loss policy - a policy covering consequential losses
  • Comprehensive policy - an all-in-one policy

Buying fire insurance

Though fire insurance can be bought in a way similar to any other policy, the smart way to do is buying it online. At Paybima, we make the process easy. Go to the fire insurance policy page, compare the different policies available for premium, coverage provided, etc., and then buy a fire insurance plan online which best fulfils your requirements. A policy can be bought by individuals as well as business organisations - if they have an insurable interest in the subject matter being insured. Apart from homeowners, landowners, etc., individuals like pawnees, pawn brokers, warehouse keepers or assignees can buy a fire insurance policy for safety of the goods.

Paybima offers all the different types of fire insurance policies from leading general insurance companies in India. You can compare the available plans and their insurance quote online and choose one for yourself. The comparison process is easy and Paybima also allows you to buy fire insurance online easily.

Read More - Fire Loss of Profit Insurance Policy