Buy Fire Insurance Policy in India - Standard Fire and Special Perils Insurance Policy

Standard Fire and Special Perils Insurance (Fire Insurance)

Fire Related Accidents have been all too common for Business Disasters. A small Short – Circuit or an Explosion has destroyed huge Factories and Buildings. Fire Damage can result in losses of Crores of Rupees. It can easily destroy years of savings and set your business back by years.

Moreover, after a Fire Incident, you would require substantial investments to resurrect your business. These Investments will be required precisely at a time when you are stretched for resources as your business has been destroyed by a Fire.

That is why it is always a wise idea to Insure your valuable assets with a Fire Insurance Policy.

Standard Fire and Special Perils Insurance (Fire Insurance)

What is a Fire Insurance Policy?

A Fire Insurance Policy is an insurance policy which compensates the Insured Party on account of any fire-related damage suffered to the Insured Property. Fire Insurance is a must to protect all your assets. A Fire Insurance Policy in India is also known as Standard Fire and Special Perils Insurance Policy.

What are the Perils covered under a Fire Insurance Policy?

A Fire Insurance Policy in India offers coverage against a range of perils apart from the basic cover against fire. The Fire Insurance coverages are as listed below:

Fire
Riots, Strikes and Malicious Damage
Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and Inundation
Explosion /Implosion
Lighting
Impact Damage
Subsidence, Landslides and Rockslides
Bursting and/or Overflowing of Water Tanks, Apparatus and Pipes

You can read our blogpost on Fire Insurance Coverages to understand about the Perils Covered under a Fire Insurance Policy in detail.

What are the Add-On Covers available in a Fire Insurance Policy?

As part of a Standard Fire and Special Perils Insurance Policy, one can opt for Add-On Covers by paying additional premiums such as:

Damages due to Earthquake
Damages due to Storm, Tempest, Flood, Inundation, Hurricane, Cyclone, Typhoon and Tornado (STFI Cover)
Damages due to Terrorism
Removal Of Debris
Architects and Surveyors Fees
Spontaneous Combustion Cover
Start-Up Expenses
Omission to Insure Additions, Alterations or Extensions
Escalation
Forest Fire

You can read our blogpost on important add-on covers in fire insurance policy to understand about these add-on covers in detail.

What can be Insured with a Fire Insurance (Standard Fire and Special Perils) Policy?

All sorts of Assets can be Insured by taking a Standard Fire and a Special Perils Policy. Most commonly, a Fire Insurance Policy is taken out for the following types of Assets:

Fire Insurance for Factories (Plant & Machinery)
Fire Insurance for Residential or Commercial Property Building,
Fire Insurance for Stocks and Inventory
Fire Insurance for Furniture, Fixtures and Fittings etc

What can be Insured with a Fire Insurance (Standard Fire and Special Perils) Policy?

How is the Premium calculated under a Fire Insurance Policy?

The Premium for a Standard Fire and Special Perils (Fire Insurance) Policy depends on the following factors:

Sum Insured of the Property
Perils to be Covered (Earthquake, STFI Cover)
Risk Occupancy of the Property
Location Details of the Property
Add-On Covers Selected as part of the Fire Insurance Policy

How is the Premium calculated under a Fire Insurance Policy?

How to fix Sum Insured under a Fire Insurance Policy?

There are 2 methods to calculate Sum Insured for a Fire Insurance Policy:

Reinstatement Value Method (RIV Method)
Market Value Method

Under the Reinstatement Value Method, the Insurance Company will pay the cost of replacing the Damaged Property with a New Property in case of a Claim. This implies that Depreciation is not levied on the Property Value. RIV Method is applicable only to Fixed Assets and not to Stocks and Contents.

Under the Market Value Method, the Insurance Company pays the Market Value (Depreciated Value) of the Insured Property in case of a Claim. Here, Depreciation is levied on the Asset depending upon its age.

How to fix Sum Insured under a Fire Insurance Policy?

What are the Exclusions in a Fire Insurance Policy?

The following causes of losses are not covered under a Fire Insurance Policy:

Exclusions in a Fire Insurance Policy

Loss or Damages caused due to War or Related Perils	Loss or Damages caused due to Nuclear Perils
Loss or Damages caused due to Pollution	Loss or Damage to Stocks in Cold Storage Premises due to change in temperature
Loss or damage to any electrical machine due to Overrunning, Short-Circuiting, or Leakage of Electricity from whatever cause (Lighting included).

You can Insure your valuable assets with a Standard Fire and a Special Perils Insurance Policy. This Policy ensures that you emerge unscathed should a Fire Damage occur.

How to Claim Fire Insurance?

Once the Insured Property has been damaged in a Fire, following documents would be required to make a Claim under a Fire Insurance Policy:

Claim Intimation in Writing or on E-mail
Policy Copy
Duly Filled and Signed Claim Form
Fire Brigade Report
Police Report
Forensic Report
Indian Meteorological Department Report in case of Weather Damages

Get the Best Quotes for Fire Insurance Policy

A Fire Insurance is a must have Insurance Policy in order to protect your assets. A small fire may result in losses of Crores of Rupees and may destroy a lifetime worth of savings. It may also result in financial distress

Qian is a leading Insurance Broker for Fire Insurance Policies. The team of experts at Qian have wide experience in assisting clients across diverse industries for their Fire Insurance requirements.

Qian can assist you with Risk Inspection Surveys for your Property which would recommend the best practices so that the Fire Risk is minimised at your Property.

You can avail a FREE consultation for your Fire Insurance requirements with our experts who will assist you with a Comprehensive Cover as per your requirements.

If you wish to purchase a Fire Insurance Policy to secure your Property, reach out to us at support@qian.co.in or 022-22044989 or fill this Contact Form. We will get back to you within 24 hours, guaranteed.

Get the Best Quotes for Fire Insurance Policy

FAQS

What is covered under a Fire Insurance Policy?

A Fire Insurance Policy Covers Damages on account of the following:

Fire
Riots, Strikes and Malicious Damage
Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and Inundation
Explosion /Implosion
Lighting
Impact Damage
Subsidence, Landslides and Rockslides
Bursting and/ or Overflowing of Water Tanks, Apparatus and Pipes

What are the Important Clauses in a Fire Insurance Policy?

Some Important Clauses in a Fire Insurance Policy are:

Agreed Bank Clause
Contract Price Insurance (for Imported Goods)
Reinstatement Value Clause
Designation of Property Clause
Local Authority Clause

What is the cost of Fire Insurance Policy?

The cost of Standard Fire and Special Perils Policy depends on the following factors:

Sum Insured of the Property
Risk Occupancy of the Property
Perils to be Covered

What types of Property can be insured with a Fire Insurance Policy?

Following types of property can be insured with a Standard Fire and Special Perils Policy:

Factories
Buildings
Homes
Offices, Shops

Testimonials

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I purchased a fire insurance policy for my factory and shop from Qian Insurance Broking. The team was very helpful and knowledgeable. They helped me understand the various clauses of a standard fire and special perils insurance policy. The quote wa

Chirag shah

Partner, Dhruvi surgical

The team at Qian has done a fabulous job with fire and health insurance. The team was quick to respond and helped me get the best rates. They suggested me various plans and guided me to take the best plans. Keep it up!

Rushabh Vora

Partner, Vora Associates

We had a seamless and wonderful experience renewing our fire and burglary insurance with Qian. Really helpful people and they use a knowledge based approach to answer all insurance related queries.

Paras

Director, Illuminati Building Solutions Pvt Ltd

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