The most popular property insurance is the standard fire and special perils policy. The fire insurance policy offers protection against any unforeseen loss or damage /destruction of property due to fire or other perils covered under the policy. Various types of property that could be covered under a fire insurance policy are dwellings, offices, shops etc and their contents; industrial/manufacturing risks and contents such as machinery, plants, equipment and accessories; goods including raw material, material in process, semi-finished goods, finished goods, packing materials etc in factories and godowns; utilities located outside industrial/manufacturing risks; storage risks outside the compound of industrial risks; tank farms/gas holders located outside the compound of industrial risks etc.
What this Policy covers:
Though it is called ‘Fire Insurance’, apart from the risk of fire, it also offers cover against lightning, explosion/implosion, aircraft damage, riot, strike and malicious damage, storm , cyclone, typhoon, hurricane, flood and inundation, impact damage, subsidence and landslide including rockslide, bursting and/or overflowing of water tanks, apparatus and pipes, accidental leakage from automatic sprinkler installations, bush fire etc.
What this Policy excludes:
A fire insurance policy usually does not cover a certain amount known as “excess” under the policy. Loss or damage caused by war and warlike operations, nuclear perils, pollution or contamination, electrical/mechanical breakdown, burglary and housebreaking are excluded. Certain perils like earthquake, terrorism, spontaneous combustion etc can be covered on payment of additional premium.