What is Fire and Perils Insurance?

Inclusions Under a Standard Fire Insurance Policy

A standard fire and perils insurance policy offers coverage in the following events:

It also covers expenses incurred for removing debris, upto a specific percentage of the claim amount. It also includes the surveyor’s fees upto a certain percentage of the claim.

Exclusions Under a Standard Fire and Perils Insurance Policy

Like every other insurance plan has some exclusions, a fire insurance policy also has certain exclusions. These include:

• If there is no occupancy in the insured property more than a month

• Damage caused due to natural heating, spontaneous combustion, or fermentation.

• Damage caused because of the building undergoing any heating or drying process

Also, certain perils are not covered under the plan. These include:

• Nuclear and its allied perils

• War and its allied perils

• Damages caused due to pollution or contamination

• Earthquake and volcanic eruption

You can find out more about the policy exclusions in the fine print of the document.

Properties for Which You Will Not Get Coverage

A fire and perils insurance plan doesn’t cover all properties. Exclusions generally include:

• Precious stones, drawings, manuscripts, books, cheques, paper money, coins, computer system records

• Damage to electronic equipment arising from excess running, self-heating, leakage of electricity because of any reason

It’s prudent to read the fine print and ask your insurer about properties that the policy will not cover. It is essential to prevent shocks later and avoid tussles during claims settlement.

The Final Word

While buying a fire and perils insurance policy, compare different plans and choose the one that best fits your scheme of things. Consider the total value of your property and opt for a coverage accordingly. Generally, a fire insurance policy is a one-year contract that you must renew annually.

• Fire Insurance
• Product Code: 1016
• Product UIN: IRDAN115RP0006V01202021