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What is Storm and Tempest Insurance?

Posted on 29 August, 2022
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Every year, two to three cyclones make landfall in India, destroying buildings, uprooting trees, and claiming innocent lives. Indians suffer heavy financial losses at the hands of these natural calamities. So, insurance companies have come up with Storm and Tempest Insurance under the Fire Insurance policy to ease that burden.

For instance, in 2021, Cyclones Yaas and Tauktae wreaked havoc in India, causing combined damages worth over USD 4.9 billion (INR 36 thousand crores as per the average exchange rate in 2021) *.

It will take years to reverse all this damage. However, the cyclones will keep coming as they have done in the previous years. [Cyclone Titli- 2018, Cyclone Fani - 2019, Cyclone Bulbul- 2019, Cyclone Amphan-2020, Cyclone Tauktae, Yaas, and Gulab- 2021

Storm and Tempest Insurance

However, Storm and Tempest Insurance under the Fire Insurance Policy can be a lifesaver during such turmoil.

What is Storm and Tempest Insurance?

It is a property-casualty insurance feature that covers the policyholder for damages caused to their property due to Cyclone, Storm, Typhoon, Hurricane, Tempest, Tornado, Inundation, and Flooding. All these correlated and co-occurring natural disasters are joined to form one peril called STFI. This insurance policy offers protection against STFI.

What is Fire Insurance?

Businesses remain open to risks of physical damage due to fire and other hazardous natural disasters. Business owners opt for Fire Insurance to avail comprehensive protection against damages caused due to fire and other risks.

Fire Insurance Provides Financial Cover Against

When you are opting for a Fire Insurance Policy, the insurer is protecting you from an array of disasters, as follows, that could set you back quite a bit:

  • Fire and explosion

  • Storm and Tempest

  • Theft

  • Lightning

  • Earthquake

  • Bursting of water tanks

  • Acts of terrorism

  • Leakage from automatic sprinkler installations

Different Types of Fire Insurance Policies That Provide Protection Against STFI

Several fire insurance policies are tailored to fit specific needs as follows:

1. Fire Insurance for Small Businesses

This policy covers the financial losses caused to insured business properties by STFI at a specific location with a total at-risk value of not more than INR 5 Crores. It includes Buildings, Machinery, Plant & Fixtures, Finished Goods and Stock-in-process, and Stocks.

2. Fire Insurance for Medium Businesses

It covers the STFI-induced financial losses caused to insured business properties at a specific location with a total at-risk value of more than INR 5 Crores but less than INR 50 Crores. It also includes Buildings, Machinery, Plant & Fixtures, Finished Goods and Stock-in-process, and Stocks.

3. Fire Insurance for Large Businesses

Covering the financial losses to insured business properties like Buildings, Machinery, Plant & Fixtures, Finished Goods and Stock-in-process, and Stocks. However, the total at-risk value of such properties must be more than INR 50 Crores, and that too, at one location.

4. Fire Insurance for Housing Societies

This policy is specially created to cover the losses to insured residential properties caused due to STFIs and other perils.

Who Needs Storm and Tempest Coverage under Fire Insurance?

Everyone is affected by cyclones and hurricanes in the form of valuable property damage. So, everyone needs Storm and Tempest Coverage under the Fire Insurance Policy. However, here is a list of entities that must invest in this policy:

  • Any organization or individual looking to protect their business from STFI

  • Godown keepers, Physical shop owners

  • Anyone with furniture and other valuable household items

  • Banks and other institutions

  • Both manufacturing and other unit owners

What Are Some Features of Fire Insurance?

  • Following the principle of Indemnity, a fire insurance policy will cover a policyholder only for the damages caused due to fire, STFIs, or any other peril mentioned in the policy. It covers the cost of reinstating your properties to their former condition, not the cost of upgrading them or making any profit.

  • As mentioned in the policy, it offers protection to physical goods and business or home equipment against losses from fire, theft, and other perils.

  • Fire Insurance covers the cost of repair, replacement, or reconstruction of the insured property.

  • Hotels, offices, restaurants, and other small enterprises are eligible for Fire Insurance Policy.

Sum Insured in Fire Insurance

The Sum Insured in case of Fire Insurance is based on the total value of the property you wish to insure.

The Reinstatement Value suffices if you want to insure a building and other fixed assets. However, in the case of stocks, the value of raw materials, stock in process, and finished stock are considered.

Your Sum Insured will be exactly how much your property is worth at the time of insuring.

Premium in Fire Insurance

The insurance company will arrive at a fair premium amount by evaluating the following:

  • The type of the insured property

  • What is the amount of Sum Insured you wanted?

  • The business activities

  • Any previous claims in the last three years

  • Other factors that may seem necessary to consider

Considering the features of the Storm and Tempest Cover, it is a smart move to opt for it before the next cyclone hits.


No one can anticipate cyclones or storms too long before it is about to make landfall. However, a fire insurance policy completely indemnifies you for the value of the insured property. So, it is worth checking out Fire Insurance policies before it is too late.

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

Help us know you better!

This contains only an indication of the cover offered. For complete details on risk factors, terms, conditions, coverages and exclusions, please read the sales brochure carefully before concluding a sale.ICICI trade logo displayed above belongs to ICICI Bank and is used by ICICI Lombard GIC Ltd. under license and Lombard logo belongs to ICICI Lombard GIC Ltd. ICICI Lombard General Insurance Company Limited, ICICI Lombard House, 414, Veer Savarkar Marg, Prabhadevi, Mumbai – 400025. . IRDA Reg.No.115. Toll Free 1800 2666. Fax No – 022 61961323. CIN (L67200MH2000PLC129408). (Workman Compensation, 4010 , IRDAN115P0010V01200607)