Covers losses due to specific risks or perils such as fire, theft, and natural disasters.
Fire and special perils insurance policy covers losses due to specific risks or perils such as fire, theft, and natural disasters. It provides coverage for damage to property, stock, and other contents. The policy can also include business interruption coverage.
However, it is essential to note that the policy has exclusions, limitations, and deductibles that vary by insurer and policy terms.
A ‘fire’ as covered under a Fire Policy, is said to have occurred when the following conditions are satisfied:
Once a ‘fire’ as meant by the policy has occurred, certain other types of losses automatically come within the scope of the Fire Policy:
Some of the above exclusions can be covered by payment of additional premiums. These are;
Subject to special conditions given in the company’s endorsements fire & allied perils cover can be extended to include loss of or damage to the property insured by fire or otherwise directly caused by an explosion, but excluding loss and damage to boilers, economizers, or other vessels, machinery or apparatus in which pressure is used or their contents resulting from their explosion.
Subject to the special conditions contained in the company’s endorsements, loss or damage due to the following causes can also be obtained: hail, snow, wind, hurricane, cyclone, tornado, typhoon, rain, flood, overflowing of gutters, bursting of water tanks, subterranean fire.
Damage or destruction by fire only to the interest of the insured caused by its own spontaneous fermentation, heating or combustion can be given as an extension to the policy.
The policy can be extended to cover the loss or damage to the property occasioned by or through or in consequence of the burning of forests, bush, prairies, pampas or jungle and the clearing of lands by fire (except where such clearing is done by or on behalf of the insured).
The standard Fire Insurance Policy does not cover: