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Fire Insurance

Extensive asset protection against diverse threats like fire, theft, natural calamities, covering costs for repair, replacement, and reconstruction.

Coverage worth

₹50 Lakhs

at just

₹2,100^*

annually

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50+ years of collective insurance experience

₹5,000 Cr+ of cumulative risks insured

What Is

Fire & Burglary Insurance?

Fire & Burglary Insurance provides coverage for physical damage to your property. This damage can occur in a variety of situations like:

Fire

Lightning

Explosions or Implosions

Aircraft Damage

Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and Inundation

Riot, Strike and Malicious Damage

Impact Damage

Subsidence and Landslide including Rock slide

Bursting and/or overflowing of Water Tanks, Apparatus and Pipes

Missile Testing Operations

Leakage from Automatic Sprinkler Installations

Bush Fire

This insurance is designed to meet the needs of businesses of various sizes, with three coverage options available:

Sookshma Udyam Suraksha

Asset Coverage

Under ₹ 5Cr

Laghu Udyam Suraksha

Asset Coverage

₹ 5-50Cr

Standard Fire Special Perils - SFSP

Asset Coverage

Over ₹ 50Cr

Features of Fire & Burglary Insurance

Coverage

Protects against physical damage to a building or structure from fire or theft.

Eligibility

Requires you to provide a detailed description of the property you want to insure and show proof that you have a legitimate interest in insuring it.

Direct Loss

Covers immediate damage caused by the fire including destruction of buildings, equipment, furniture, inventory, and other physical assets within the property.

Policy Duration

The policy term is typically one year, with annual renewal required.

Customizable

Coverage options may be customized to meet the specific needs of a business.

Who Needs

Fire & Burglary Insurance?

Companies that own or rent assets in the form of office premises, stock, machinery, cash, or other forms need comprehensive fire and burglary insurance policies.

In addition to covering the office, retail, or factory premises, this policy also protects the contents inside the premises including electronic equipment like laptops, computers, and phones.

Fire & Burglary Insurance offers valuable coverage for businesses of all sizes and industries.

A few common businesses that purchase fire insurance are:

Hotel Owners and Service Providers

Guard against the financial consequences of fire damage to your hospitality or service-based business.

Shop-keepers and Godown Owners

Protect your retail or storage space from the potential financial impact of a fire.

Manufacturing and Industrial Units

Safeguard your operations, vehicles, and equipment with fire insurance.

Medical Clinics

Protect your medical facility, equipment, and patient records from fire damage.

Banks and Other Institutions

Ensure the protection of your financial assets and operations with fire insurance.

Why Get

Fire & Burglary Insurance?

Fire incidents are common causes of accidents in both residential and commercial sectors in India. In 2021, India recorded 1.6 million fire accidents.

Securing your assets is critical to your company's growth and stability. Fire & Burglary Insurance protects your property and its contents from a variety of occurrences, including fire, theft, natural disasters, and man-made events such as riots and terrorism.

The Insurance offers tailored protection options to suit your business requirements. You can select from specialized coverage choices such as Sookshma Udyam Suraksha, Laghu Udyam Suraksha, and Standard Fire Special Perils (SFSP).

Benefits of a Fire Insurance Policy

Fire insurance offers protection against any harm or destruction from fire, fermentation, natural heating, or spontaneous combustion.

If a machine is damaged by fire, fire insurance covers the costs of repair or replacement.

Fire insurance also covers the cost of reconstruction of the property as per the sum insured in the policy.

Coverages & Exclusions in

Fire Insurance

CoveragesExclusions

Fire insurance protects your business and its assets, shielding them from potential losses caused by fires or thefts. It covers a range of incidents related to fire and break-ins.

Loss to an adjacent property

This insurance provides coverage in the case of a fire or burglary that damages or destroys the insured property while also causing damage to neighbouring property. It covers the costs of repairing or replacing the neighbouring property.

Fire-related loss

Fire-related property losses to office buildings, machinery, furniture, and other items inside the premises, can result in severe financial damage. Fire and Burglary Insurance covers damage caused by fire, including the cost of repairing or replacing the damaged property.

Bush Fire

Setting up a fire in the bush-grown area may damage the property. This incident is covered under the fire policy. Please note the forest fire incident is not covered directly. Additional payment is required to have coverage for forest fire incidents.

Natural Calamity

This policy provides coverage for any harm or destruction that may occur to the insured property as a result of natural disasters like landslides, typhoons, thunder, lightning and other similar calamities.

Damage due to aircraft

This policy provides coverage for any damage to property resulting from aircraft-related incidents such as dropped articles, airborne devices, or any other causes.

Explosion/Implosion

Damage caused due to any explosion/implosion is covered under this policy.

Armed robbery

The loss of items like money, jewellery, gadgets, and other stolen personal property may be covered by the policyholder's fire & burglary insurance in the event of an armed robbery. It may also cover any property damage incurred as a result of the heist, including broken or damaged windows, doors, or other sections of the building.

Violent and forceful entry

In the event of a covered risk, such as burglary or theft with evidence of violent and forced entrance, a fire and burglary insurance policy may cover both property damage and the value of stolen objects. If the break-in renders the property unusable, the insurance may pay for interim housing.

Business Interruption

The Fire Loss of Profit policy (FLOP), also known as a Business Interruption (BI) policy, provides coverage for businesses that experience disruptions in their operations. This coverage includes compensation for the loss of income and the expenses incurred due to a fire or other perils that cause interruptions to the business. By paying a specified amount, the policy extends coverage for an extended period of time.

Damage to personal property

Fire and Burglary Insurance offers coverage for expenses resulting from property damage due to fire or theft including temporary renting costs. The policy may also cover the expense of storing personal belongings elsewhere temporarily.

While fire insurance policy offers a broad coverage for businesses, it's important to note that there are certain incidents that may not be included. Here are some:

Deliberate or purposeful harm

Any damage caused with intent or willful action is not covered under the policy. This includes situations where someone intentionally causes harm to the insured property.

Cold storage stock damage due to temperature fluctuations

If damage occurs to stocks stored in cold storage facilities as a result of temperature changes, such as spoilage or deterioration, it may not be covered directly by the insurance policy. However, upon some additional payment you can avail the coverage.

War, invasion, or war-like scenarios

Damages arising from acts of war, invasion, or war-like situations are typically excluded from insurance coverage. This includes any losses caused directly or indirectly by such events.

Pollution or contamination

Damages caused by pollution or contamination, such as environmental pollution or toxic substances, may not be directly covered by the insurance policy. However, upon some additional payment you can avail the coverage.

Lost or misplaced property

If the insured property goes missing or is misplaced, it may not be covered under the policy. This applies to situations where the property cannot be located or accounted for.

Claim preparation expenses

Any fees or expenses incurred while preparing or processing the insurance claim, such as documentation or legal costs, are generally not covered by the policy.

Consequential or indirect losses

Indirect or consequential losses, which occur as a result of the insured event but are not directly caused by it, may not be covered by the insurance policy. This can include financial losses or damages that arise as a consequence of the initial incident.

Unoccupied building for more than 30 days

If the insured building remains unoccupied for a period exceeding 30 days, certain types of damages or losses may not be covered by the policy. This typically applies to risks associated with unoccupied premises, such as increased vulnerability to theft or vandalism.

Electrical machinery damage or electricity leakage

Damages resulting from electrical machinery malfunctions or leakage of electricity may not be covered under the insurance policy. This includes situations where the insured property or equipment suffers electrical-related damages or losses.

Add-on Coverage

The policy provides extensive protection for the business and its assets. However, there are certain things that are not automatically included in the coverage. But depending on the relevance to the business the insured can obtain add-on coverage. Here are some:

Debris
Forest fire
Earthquake
Architects, Surveyors and Consulting Engineer Free
Detoration of stocks in cold store due to temperature change
Impact damage due to insured’s own rail/road vehicles, fork lifts, cranes, stackers and the like and articles dropped therefrom.
Spontaneous combustion
Leakage and contamination cover
Temporary removal of stocks clause
Loss of rent clause
Insurance of additional expenses of rent for an alternative accommodation
Start up Expenses

Fire Insurance Examples

Incident 1Incident 2

Insurance Claim for Small Business

Incident

Arvind, the owner of a small business that sells handmade wallets, has invested ₹40 lakhs into his venture, including buying a commercial space and stocking up on inventory. To safeguard his investment, he decides to get fire insurance. One day, a fire breaks out in the building where his business is located, causing damage to the building and destroying much of his inventory.

Resolution

Thanks to his fire insurance policy, Arvind can file a claim and receive financial compensation for the losses caused by the fire, including lost inventory. Without the fire insurance, Arvind would have had to bear these costs himself, which could have been devastating for his business.

About Fire Insurance

What type of property is covered by fire insurance?

What are the major elements of fire insurance?

Who is eligible for fire insurance?

What are the rules of fire insurance?

How is the claim calculated in case of a fire or burglary incident?

What is the first loss in fire & burglary insurance?

What is the usual period of fire insurance?

What is the total loss in the fire insurance policy?

What are the biggest risks in fire safety?

What is the key clause in burglary insurance?

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This is an article by YouStory written by Palak Agarwal and published on October, 2022

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BimaKavach Insurance Broking Pvt. Ltd. | CIN- U66010MP2022PTC059393 | Registered Office- Flat No 201, Classic Avenue, 184 Shrinagar Main, Indore Madhya Pradesh India- 452018 | Phone No.- 9036554785 | Email- support@bimakavach.com

BimaKavach is registered as a Direct Broker | Registration No. 901, Registration Code No. IRDAI / DB 985/ 2022, Valid till 25/06/2026, License category- Direct Broker (General).

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