Fire and special perils insurance
Cover for buildings, plant, stock and contents against fire and a defined list of other perils, on the standard fire and special perils wording used across India.
What it covers
Cover varies between insurers and plans. The policy wording is what decides whether a claim is payable, so read it before you buy.
- Fire, lightning, and explosion or implosion, as the policy defines
- Aircraft damage, and impact damage by vehicles or animals
- Riot, strike and malicious damage
- Storm, cyclone, typhoon, flood and inundation
- Subsidence, landslide and rockslide
- Bursting or overflowing of water tanks and pipes, sprinkler leakage, missile testing and bush fire
Key features
- Sum insured on a reinstatement value or market value basis, which changes how a claim is settled
- Building, plant and machinery, furniture and fittings, and stock each declared separately
- Stock can be insured on a declaration basis where levels move through the year
- Add-on covers such as loss of rent, architects' fees, removal of debris, escalation and earthquake
- Underinsurance is reduced proportionately at claim under the policy's average condition, so declare full values
- Business interruption after insured damage is a separate policy, not part of this one
How to buy it
Four steps, with an advisor you can reach at any of them.
Tell us about the risk
Tell us the address, construction and use of the premises, and the values of building, plant, stock and contents.
Underwriting details
An advisor collects the information insurers need to price the risk, and flags anything missing.
Compare quotes
We ask our partner insurers to quote, and put the cover, conditions and premium side by side.
Proposal & policy
Pick a quote, complete the proposal form and KYC, and the insurer issues the policy.
Fire and special perils insurance: FAQs
Is this the same as home insurance?
It is the commercial version. Home insurance packages the same perils with cover for household contents, valuables and liability; fire and special perils is written for business premises and business assets.
What is the average clause?
If the sum insured is less than the value at risk, the insurer pays only that proportion of the loss. Declaring correct, current values is the single most important thing on a property policy.
Is earthquake covered?
Earthquake is not in the base cover; it is available as an add-on for extra premium. Ask for it where your location warrants it.
Does the policy pay for lost profit while we rebuild?
No. That is business interruption, or fire loss of profit cover, bought alongside the property policy and rated on your gross profit.