What is Fire Insurance Policy? Here is the Top Guidance

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. Also, get compare bike insurance online to covers bike damage problems. 

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:

1) Fire
2) Lightning
3) Explosion or implosion
4) Damages due to riots, strikes and other malicious activities.
5) Storm, Cyclone, Hurricane, Typhoon Tempest, Tornado, Flood and Inundation (also called STFI cover)
6) Landslide and rockslides
7) Damage due to impact by any road or rail vehicle or animal
Missile testing operations
8) 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:

1) Any loss or damage caused due to war or related perils
2) Loss or damage caused directly or indirectly by a nuclear peril
3) Any loss, damage or destruction caused to a property due to pollution or contamination
4) Any type of consequential losses
5) 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.

Coverage

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

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

Extensions available in a fire insurance policy in India

Besides the regular coverage features which are available in almost all policies, there are some extensions too which you can buy by paying an additional premium. Some common extensions available in a fire insurance policy include the following –

1) Coverage for terrorist activities
2) Removal of debris after a fire
3) Fees payable to architects, surveyors or consulting engineers if it exceeds 3% of the claim
4) Fire due to earthquake
5) Spoilage of goods because of a damage
6) Damage of stocks which were held in cold storage
7) Damages suffered due to forest fires or bush fire
8) Losses suffered due to molten metal spillage or impact damage
9) 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 types of policies are discussed below:

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

Buying fire insurance

Fire insurance policies can be bought online. Online fire insurance policies are easy to buy and are issued quickly. You can search for online fire insurance policies through reputed online brokers, compare the available plans and buy a plan which best fulfils your requirements. The policy can be bought by individuals or business organisations if they have an insurable interest in the subject matter being insured. Individuals like pawnees, owners, pawn brokers, mortgagees, warehouse keepers or assignees can buy a fire insurance policy for safety of the goods.
   
Paybima compare insurance online offers all the different types of fire insurance policies  available in the market along with the insurance quote. We have a tie-up with all leading general insurance companies which offer a fire insurance policy in India. 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.