Fire insurance is a type of property insurance that covers loss or damage caused to your office buildings, home or any other site/place where you run your business. Purchasing this insurance policy helps to cover the repair cost, replacement cost or reconstruction of property as per the sum insured amount specified in the policy.Read more
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Let us understand the fire insurance meaning and why is it a wise choice. Here are some of the features of fire insurance that indicate why you should purchase it.
Here are the types of fire insurance policies in India that you can purchase:
There are 5 types of policies specifically under Standard Fire & Special Perils insurance (SFSP). They are as follows:
The following are the characteristics of a fire insurance policy, which make it a unique product to others. Let us understand the characteristics, which should not be ignored:
In the table below, have a look at the different insurance companies providing fire insurance plans in India:
|Insurer||Claim Settlement Ratio|
|IFFCO Tokio Fire Insurance||97.54%|
|ICICI Lombard Fire Insurance||71.66%|
|Liberty Videocon Fire Insurance||78.47%|
|Magma HDI Fire Insurance||88.18%|
|National Insurance Fire Insurance||61.75%|
|New India Assurance Fire Insurance||64.90%|
|Oriental Fire Insurance||81.40%|
|Raheja QBE Fire Insurance||76.92%|
|SBI General Fire Insurance||66.95%|
Disclaimer: *Policybazaar does not recommend, rate or endorse any particular insurer or insurance product offered by an insurer.
Covering a wide range of perils, it is often termed as Standard Fire and Special Perils Policy is also known as SFSP. In the below grid, let us have a look at the inclusion the policy offers:
|Fire Insurance Perils||Inclusions|
|Fire||The policy provides coverage for any damage caused due to the fire. Besides, any damage caused due to natural heating, own fermentation or unconstrained burning is not included.|
|Lighting||If any damage/loss occurs because of lighting, for instance, cracks in the roof/building area, etc. it will be covered.|
|Explosion||Damage caused by a fire explosion is covered under this policy.|
|Aircraft Damage||If any damage happens which leads to fire due to an aircraft, for instance, articles dropped by an aircraft, airborne devices etc. will be covered under the policy.|
|Terrorist Activity, Riots/Strike||Any harm to the protected property caused because of a strike, riot or any fear-monger action, is secured by fire insurance.|
|Natural Calamity||Any damage to the insured property due to any natural calamity such as storms, typhoons, etc. is covered under the policy.|
|Landslide/Rockslide||You will be covered for the destruction caused to your property due to a rockslide/landslide.|
|Bursting/Overflowing of the Water Tank||If the property is damaged due to bursting/overflowing of the water tank, it will be covered.|
|Bush Fire||Setting fire to overgrown bushes/plants may end up damaging the property. This will be covered under the policy. Please note that the policy will not cover the destruction caused due to the forest fire.|
Here are some of those events that are not covered under Fire Insurance:
If you wish to buy a fire insurance policy, the following is the criteria:
Upon the payment of an additional premium of fire insurance, the insured can benefit the following add-on coverage:
Sum insured is one important aspectwhen you buy fire insurance policy. It is of utmost importance to be much careful while choosing a sum insured.
The following things need to be kept in mind while deciding the sum insured for a fire insurance policy:
Filing a claim for fire insurance is simple if approached in the correct direction. Below are steps to claim your fire insurance policy, which are:
The following is the list of common documents, which will be required while filling any claim related to fire insurance:
The truth is that if you own a business it is always vulnerable to risks despite the precautions you undertake or you use the technological advancements. It is better to take care of the possibilities. It is better to be safe than sorry.
What are you waiting for? Buy fire insurance today!
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