Call Us Toll Free No. 1800-266-2626
mail mail   

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 an insurance policy which is designed to compensate against losses caused due to fire. The policy has a wide scope of coverage and small or 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 fire insurance claims due damages caused by fire but covers 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 too which are not covered under a standard fire insurance policy. These exclusions in fire insurance claims 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.


A fire insurance policy covers various aspects of a business. It provides coverage for:

  • 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

Types of fire insurance policies

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

  • 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

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