What are the Exclusions of Fire Insurance?

Fire insurance is a type of property insurance that provides coverage for losses or damages caused by fires. However, there are some exclusions of fire insurance that are not covered under the policy. These exclusions serve the purpose of clearly defining the scope and limitations of coverage.

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Exclusions under Fire Insurance Policy in India

The exclusions of fire insurance policy in India are as follows:

  1. Willful or intentional damage: Deliberate acts of damage or destruction caused by the insured party are excluded from fire insurance coverage.
  2. War, invasion, or war-like operations: Losses arising from acts of war, invasion, or war-like operations are not covered under the fire insurance policy.
  3. Missing or mislaid property: Losses related to property that is missing or misplaced are excluded from coverage.
  4. Fees or expenses while preparing a claim: Any costs incurred in the process of preparing a claim are not covered by the fire insurance policy.
  5. Electrical machines damage (any particular machine): Specific electrical machines may be excluded from coverage for damages under the fire insurance policy.
  6. Leakage of electricity: Damages resulting from the leakage of electricity are not covered by the fire insurance policy.
  7. Damage to stocks in cold storage due to a change in temperature: Losses to stocks in cold storage caused by temperature changes are excluded from coverage.
  8. Pollution or contamination: Damages from pollution or contamination, such as environmental damage, are also one of the exclusions of fire insurance, and these are not covered.
  9. Consequential loss or indirect loss: Indirect losses or consequences resulting from a fire incident are typically excluded from coverage.
  10. Unoccupied premises for more than 30 days: If the insured premises or building remains unoccupied for more than 30 days, certain losses may not be covered by the fire insurance policy.
  11. Short-circuit: Damage to items that short-circuit is not covered. However, the insurance policy covers any damage to content and the structure caused by the resulting fire.

Responsibilities of Policyholders

  1. Importance of Providing Accurate Information: Policyholders have a duty to disclose all relevant information to the insurance company when obtaining coverage. This includes accurate details about the insured property, potential risks, and other information that may impact the underwriting process.
  2. Understanding Exclusions: Policyholders should regularly review their insurance policy terms, paying particular attention to exclusions. Exclusions specify situations or conditions that are not covered by the policy. Understanding these exclusions is crucial to avoid surprises during a claim. 

Moreover, if there are uncertainties or questions about any exclusions of fire insurance or any other policy, policyholders should seek clarification from their insurance provider.

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Example of Failed Fire Insurance Claim 

XYZ Frozen Foods Company has a comprehensive fire insurance policy that covers its cold storage facilities. Unfortunately, a sudden malfunction in the cooling system leads to a significant rise in temperature, causing spoilage and damage to the frozen food stocks stored in the facility.

Upon filing a claim with their insurance company, XYZ Frozen Foods Company is informed that the policy specifically excludes coverage for damage to stocks in cold storage due to changes in temperature. The insurance company points to this exclusion in the policy, stating that losses resulting from fluctuations in temperature are not covered.

In this case, despite the company's expectation that their fire insurance would provide financial protection for such incidents, one of the explicit exclusions of fire insurance related to temperature changes results in the denial of the claim. 


Understanding the exclusions of a Fire Insurance Policy is paramount for policyholders seeking comprehensive protection for their properties. As It empowers them to make informed decisions, fosters a robust insurance relationship, and safeguards against unexpected financial setbacks in the event of a fire-related incident. So, if you are still unaware of the exclusions of your fire insurance policy, then this is a reminder for ,you to go through it or if you are planning to take one then don't forget to familiarize yourself with the exclusions.

Written By: PolicyBazaar - Updated: 12 June 2024
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Policybazaar for Business - Fire Special Perils Insurance - Customer Reviews
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4.8 October 09, 2022
Amazing Customer Support
I am using a fire insurance policy from policybazaar and experienced amazing feedback from them in claim settlement. I have a sports merchandise shop that caught fire last yearI raised a claim which was resolved within a few days without any hassles.
4.8 October 08, 2022
Helpful Support
The support team of Policybazaar is really helpful and prompt. They solve all your queries fast. Would definitely recommend Policybazaar for purchasing insurance .
4.8 October 07, 2022
Extensive Cover
Got a fire insurance policy for my shop and it was really extensive with so many features. Purchased it from Policybazaar without paying any commission fees. Great coverage.
4.5 October 06, 2022
User Friendly Website
We deal in the cotton industry and suffered a huge loss last year because of the fire. We were looking for insurance to safeguard us financially from any such incident in the future. We landed on the policybazaar website and bought fire insurance. Their website is well managed and gives all the necessary information.
4.8 October 05, 2022
Plans Are In Budget
Had to purchase a fire insurance which should be in my budget as I run a very small store. Got a lot of affordable plans on Policybazaar and purchased the one that suited my budget. All plans are in budget and with so many features.
4.3 October 04, 2022
Covered My Shop
I have a shop of garments and it caught fire last year in which I lost items worth thousands. Purchased a fire insurance from Policybazaar and now I feel really relieved that it would financially cover my shop in such circumstances.
4.3 October 03, 2022
Faster Claim Settlement
A part of my warehouse having thousands of material caught fire. Luckily I had a fire insurance policy that I could claim and received compensation from them. It was such a relief. The claim settlement team at Policybazaar is helpful and really quick.
4.5 October 02, 2022
I have a warehouse of clothes and was planning to buy a fire insurance policy to cover my material from unwanted fire. Got a really affordable plan from Policybazaar with some really great features.
4.5 October 01, 2022
Budget Friendly
Wanted to cover my crockery shop from fire and was searching for an affordable plan. Found a great plan at Policybazaar which suited my budget.
4.5 September 30, 2022
Instant Purchase
Wanted a fire insurance policy for my crockery business and could purchase it instantly from Policybazaar. The process was quick instant and very easy.