What Makes Fire Insurance Crucial?
Let’s examine the meaning of fire insurance and why it is an intelligent decision. Here are a few characteristics of fire insurance that show you why you should buy it.
- Protection from any loss or damage from a moving or stationary object that explodes in flames.
- A fire policy covers property damage caused by a fire accident, including damage to stock, office equipment, furniture, and more.
- A burglary insurance policy covers damages brought on by explosions, water tank bursts, and other natural disasters in addition to fire perils.
The Features of Fire Insurance*
- Direct Loss: One may take advantage of this if the fire is the primary cause of the loss or damage.
- Personal Right: The person whose name is listed in the policy document will be given the insured amount in the event of any loss or damage under any unlucky circumstances.
- Contract For Personal Insurance: The rule mandates complete openness. The insured must be aware of their actions. Additionally, the insured may only transfer the policy with the insurer’s permission, and the insurer has the right to revoke the policy if the insured transfers ownership of the goods to a third party.
- Property Description: It is crucial to provide a correct account of the possessions when purchasing a fire insurance
India’s Fire Insurance Inclusions*
- Fire Any damage brought on by the fire is covered by the policy. Additionally, any damage brought on by spontaneous combustion, personal fermentation, or available heating is not covered.
- Lighting It will be covered if any loss or damage results from lighting-related issues, such as roof or building area cracks.
- Explosion Under this policy, damage brought on by a fire explosion is covered.
- The policy will provide coverage if an aircraft causes any damage that results in a fire, such as items dropped by an aeroplane, airborne devices, etc.
- Riots, strikes, and terrorist activity – Fire insurance covers any damage to the protected property brought on by a strike, riot, or other action designed to instil fear.
- The policy covers any harm done to the insured property due to any natural disaster, including storms, typhoons, etc.
- Plants and bushes that are overgrown could suffer damage if they are set on fire. The policy will provide coverage for this. Please be aware that the policy does not cover forest fire-related damage.
Exclusions in an Indian Fire Insurance Policy*
It is frequently referred to as the Standard Fire and Special Perils Policy (SFSP), which covers a wide range of perils. The following are some of the situations that fire insurance does not cover:
- Damage that is willful or deliberate
- Stocks in cold storage are harmed as a result of temperature changes
- War, invasion, or operations that resemble war
- Contamination or pollution
- Misplaced or missing property
- Direct or indirect loss as a result
- Fees or costs incurred while filing a claim
- If the building or premises covered by the commercial insurance is vacant for more than 30 days
- Electrical machines can cause damage to any machine.
- Short-circuit
- Electricity leaking
*Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
