Fire InsuranceStandard Fire And Special Perils

Standard Fire & Special Perils

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Standard Fire & Special Perils Policy

This insurance policy covers various perils such as fire, lightning, explosion/implosion, impact damage, aircraft impact, bursting/overflowing of water tanks/pipes/apparatus, sprinkler leakage, subsidence, landslide, rockslide, riots, strikes, malicious damage, missile testing operations. Additionally, there are add on options to cover Earthquake, STFI (Storm, cyclone, typhoon, hurricane, tempest, tornado, flood, inundation) and Terrorism risks and a host of other add-on cover also.


Considering the amount that insurance company can pay for losses and save you from further problems, one shouldn't ignore fire insurance. Some of the benefits of fire policy:

  • In the case of factory and office, the policy provides cover for damaged to Furniture Fixtures fittings due to Fire and/or allied perils.
  • The insurance also covers the cost of repair of machines damaged due to Fire policy perils.
  • Economical rates of premium.
  • Wider coverage - which includes losses due to natural calamities like Earthquake, Storm, Floods and inundation etc.also.


All moveable/ immoveable properties of the proposer on land (excluding those in transit) are broadly categorized as follows:

  • Building
    • Whether completed or in the course of construction
    • Interiors, Partitions and Electricals
  • Plant & Machinery, Equipments & Accessories
    • Bought Second hand
    • Bought New
    • Obsolete Machinery
  • Stocks
    • Raw Material
    • Finished Goods
    • Work In process
    • In trade belonging to Wholesaler, Manufacturer and Retailer
    • Consumables & Stores & Scrape, including packing material
  • Other Contents
    • Furniture, Fixtures and Fittings
    • Office Equipment
    • Cables, Piping
    • Spares, Tools and Stores
    • Household goods etc.
  • Specific Items
    • bullion
    • unset precious stones
    • curios
    • work of arts
    • manuscripts
    • plans
    • drawings
    • securities
    • obligations or documents
    • stamps
    • coins or paper money
    • cheques
    • books of accounts
    • computer system records
    • explosives

Perils Covered

The policy provides protection against damages/fortuities triggered by the following perils:

  • Fire
  • Lightning
  • Explosion/Implosion
  • Aircraft damage
  • Riot, Strike, Malicious and Terrorism damage (hereinafter called RSMTD Perils)
  • Impact by any Rail/ Road vehicle or animal
  • Subsidence/Landslide, including rockslide.
  • Bursting and/or overflowing of water tanks, apparatus.
  • Leakage from Automatic Sprinkler Installation.
  • Missile Testing Operation.
  • Pollution or contamination resulting from any of the above perils
  • Any insured peril resulting from pollution and contamination
  • Bush Fire

Add on Perils

In addition to the perils covered above, the proposer can opt to take additional cover in respect of the following perils at inception or during the currency of the policy on payment of additional premium:
Loss/ damage/ destruction of the property caused by

  • Earthquake (Fire and Shock)
  • Storm, Tempest, Flood, Inundation, Hurricane, Cyclone, Typhoon and Tornado (STFI)
  • Deterioration of Stocks in Cold Storage premises due to power failure following damage due to an insured peril
  • Forest Fire
  • Impact damage due to Insured's Vehicles, Forklifts and the like and articles dropped therefrom
  • Spontaneous Combustion
  • Omission to insure additions, alterations or extensions
  • Spoilage material damage cover
  • Leakage and contamination cover
  • Temporary removal of stocks
  • Terrorism

Expenses Covered

The policy automatically covers the following expenses incurred following loss/damage/destruction of a covered property as a result of the operation of an insured peril.

  • Architects, Surveyors and Consulting Engineers' Fees up to 3 % of the claim amount
  • Expenses incurred for the removal of debris to clear the site up to 1 % of the claim amount
  • Machinery and equipment temporarily removed for repairs, cleaning, renovation or other similar purposes for 60 days.

Add on Expenses:

  • Architects, Surveyors and Consulting Engineer's Fees (in excess of 3% claim amount)
  • Debris Removal (in excess of 1% of the claim amount)
  • Loss of rent.
  • Insurance of additional expenses of rent for alternative accommodation.
  • Startup Expenses


  • Properties not covered:
    • Items like manuscripts etc. unless specifically declared.
    • Software unless specifically declared.
    • Cold storage stocks due to change of temperature
    • Loss/damage/destruction of any electrical and/or electronic machine apparatus fixture or fitting arising from overrunning excessive pressure short-circuiting self-heating or leakage of electricity from whatever cause which includes lightning.
    • Loss/damage/destruction of boilers economizers or other vessels in which steam is generated oee with apparatus subject to centrifugal force by its explosion/implosion.
  • Perils not covered:
    • War and allied perils
    • Ionizing radiations and contamination by radioactivity or Nuclear and allied perils
    • Pollution or Contamination.
    • Coastal or river erosion
    • Forest Fire
    • Loss or damage by spoilage resulting from the retardation of any process caused by the operation of any insured perils
  • Losses/ Expenses not covered:
    • 5% of each and every claim subject to a minimum of Rs. 10000 if Sum insured is up to Rs. 10 Crores
    • 5% of each and every claim subject to a minimum of Rs. 25000 if Sum Insured is above Rs. 10 Crores and up to Rs. 100 Crores
    • 5% of each and every claim subject to a minimum of Rs. 500000 if the Sum Insured is above Rs. 100 Crores.
    • Expenses incurred on Architects Surveyors' Consultant Engineers fees and Debris Removal in excess of 3% and 1% of claim amount respectively unless specifically covered additionally.
    • Loss of earnings loss by delay loss of market or other consequential or indirect loss or damage of any kind

Claim process

In the event of loss, the following are immediate actions to be taken
Intimate the insurer the occurrence of loss, submit a full statement in writing of the claim, provide the nature and extent of loss and also the estimate of loss. Any delay in intimation might jeopardize the claim as the insurer may express an inability in accepting liability of the loss/damage.

  • To take all steps to reduce and minimize the extent of loss/damage and liability.
  • Proximate cause of the loss and assess the type/extent and whether it is within the scope of the policy
  • To extend full co-operation to the insurer and the surveyor appointed for completion of the survey work and for proper assessment of the loss.
  • Produce all such records and proof as may be required by the surveyor or the insurer for arriving at the extent of loss and the liability under the policy.
  • Provide documents such as claim form, claim bill, copy of policy etc.
  • Keep the damaged property under the safe custody until advised by the surveyor/insurer regarding its disposal.
  • Identification of the subject-matter insured.

Why Choose PrishaPolicy

5 Reasons why you should choose us to be your policy issuing partner of choice. Allow us to tell you why we are one of the fastest growing insurance brokers.

Customer-Centric Culture

For us, you always come first. Our products and services are designed to find the best coverage for all.

A Decade of Market Leadership

Our teams expertise and experience makes them the perfect guides in choosing a policy that fits your needs.

Reliable and Consistent

Rest assured that everything will be taken care of without a glitch. From shortlisting to claims processing & delivering promises without a hitch.

Guided Policy Assistance

Our experts are forever ready to assist you through each policy detail with a fine-tooth comb.

Claims Assistance

Our DNA prompts - Sales is incomplete without timely support. From start to end, we facilitate smooth processing from lodging to settlement.

Still Thinking About It?

Get on a call with us. We take pride in being associated with you for competitively managing your risks with the best insurance covers and delivering a stress-free experience.

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Questions You Might Have

Why do I need to insure my building?

Your building may get damaged due to fire or other perils and the losses will not be covered by a general insurance policy. For that, you'll need a fire insurance that will cover the damages sustained by the building. Similarly, natural calamities also may wreak devastating losses, which can burn a hole in your pocket. Hence, to safeguard your property, you need fire insurance.

Can I cancel my policy in the middle of the policy tenure? Will the amount be refunded?

Yes, the insurance company will give you a pro-rated refund of premium. If there is any retention of premium or balance for a short period, it will be refunded.

Does fire insurance also offer coverage for jewellery, ornaments and artworks?

Usually, general fire insurance doesn't cover these items, unless discussed with the insurer while buying the policy. However, on special request and subject to valuation, these items can be covered under a policy.

What property insurance should I purchase if I own an SME?

There are various insurance plans offering coverage against risks such as fire, earthquakes, floods that cause damage to the building, unexpected breakdown of any machinery, damage to electronic equipment, workmen compensation, fidelity guarantee, cargo risks cover etc. You can select the Sum Insured for every category based on the insurance needs of the enterprise.

Does burglary insurance cover my household goods when I am away?

A burglary insurance policy covers you against the risk of theft. However, the policy will cease if the house remains unoccupied beyond a defined period unless the insurance company has been informed beforehand. In such cases, you will be covered only if the insurer agrees to extend the cover even if the house is empty. This is why it is important to clear everything at the time of buying the plan.

Am I eligible to claim a higher amount if opt for a higher value?

No. The correct claim amount is decided based on the current market value of your property and the basic Sum Insured. The compensation that is to be offered, in case of a loss, will be decided on whether the property is sufficiently insured or not. If you choose an excessive amount, it will mean excessive premium, while in case the amount is adequate, you'll get an amount is equal to the market value of the property. In both the cases, the offered claim amount will be the same.

How to handle a loss in case of a fire?

Despite all the precautions, you can't predict a calamity. Hence, you need to be calm in case any such situation arises. In case of a fire, inform the local fire brigade who will help you to put out the fire. If there is any loss of another person's property due to the fire or in an effort to douse it, the insurer shall compensate for the same.
Inform the insurer, cooperate with the supervisor at the time of loss assessment. You can also take photos of the loss if the surveyor takes a lot of time to arrive and shift all the unaffected assets to a safe place. Fill the claim form and submit it along with the documents supporting your claim. After the repair or replacement of damages, submit all the bills to the insurer.