Fire Insurance

Why is Fire Insurance important?

In India, fire-related incidents are alarmingly frequent, stemming from a range of causes, including electrical faults and natural calamities. These calamities can inflict severe harm on both individuals and businesses, resulting in substantial financial setbacks and property destruction.

Fire insurance emerges as a critical safeguard in these situations, serving as a vital financial lifeline against the devastating aftermath of fire accidents. Beyond merely offsetting immediate financial losses, it also ensures adherence to safety standards within sectors mandated to possess fire insurance.

Hence, opting for fire insurance showcases the preparedness and forward-thinking of individuals and businesses, enhancing their readiness to confront the unexpected challenges posed by fire hazards.

Who Should Purchase Fire Insurance Policy?

Fire insurance protects individuals or businesses against the financial consequences of fire-related damage. When a person or company acquires a fire policy, they establish an agreement with an insurance provider and commit to regular premium payments to maintain coverage.

In the event of a fire causing harm to the insured property, the policyholder reports the incident to the insurance company, which conducts an investigation to assess the validity of the claim. If the claim is consistent with the policy terms, the insurance company issues compensation to cover the financial losses resulting from the fire.

Features of Fire Insurance

The features of a fire insurance policy are as follows:

• Fire insurance offers coverage against fire incidents.
• It protects various types of property from fire damage.
• The insured receives reimbursement for repair or replacement costs.
• Coverage limits can be tailored to specific needs.
• Business interruption coverage compensates for lost income.

Types of Fire Insurance in India

Here are the types of fire insurance policies in India that you can purchase:

1. Standard Fire & Special Perils: This policy covers the loss or damage caused to buildings, plant and machinery, stock and other assets for a sum insured exceeding ₹50 Crores.
2. Bharat Sookshma Udyam Suraksha: This policy covers the loss or damage caused to buildings, property, plant and machinery, stocks and other assets for a sum insured up to ₹5 Crores.
3. Bharat Laghu Udyam Suraksha: This policy provides coverage for the damage or destruction caused to the building, plant & machinery, stocks and other assets for a sum insured between ₹5 Crores and ₹50 Crores

Ideal Fire Insurance Plans in India

In the table below, have a look at the different insurance companies providing fire insurance plans in India:

Disclaimer: *Policybazaar does not recommend, rate or endorse any particular insurer or insurance product offered by an insurer.

Inclusions Under Fire Insurance in India

Covering a wide range of perils, it is often termed as Standard Fire and Special Perils Policy is also known as SFSP. In the below grid, let us have a look at the inclusion the policy offers:

Exclusions Under Fire Insurance Policy in India

The fire insurance policy does not provide coverage for the following events:

• Deliberate, willful or intentional acts
• Loss or damage to stocks in cold storage because of a change in temperature
• War, invasion, war-like operations
• Pollution or contamination
• Missing property or mislaid
• Consequential or indirect loss or damages
• Costs, fees or expenses for preparing any claim
• If the insured premises or building remains unoccupied for more than 30 days.
• Unset precious stones, bullion or work of art unless specifically declared
• Loss or damage to any of the electrical machines, short circuits, apparatus, leakage of electricity, etc. This exclusion applies to a particular machine that is lost or damaged.

Fire Insurance Policy: Add-Ons

Upon the payment of an additional premium, the insured can benefit from the following add-on coverage:

• Earthquake
• Wreckage removal
• Forest fire
• Loss of rent
• Start-up cost
• Alternate accommodation
• Unconstrained burning
• Damage to stock because of change in temperature
• Leakage and contamination cover
• Architect, Engineers, Surveyors consultation fee
• Cover for molten metal spillage
• Impact loss owing to the insured’s own road/rail transit

Fire Insurance Claim Process

Below are steps to claim your fire and burglary insurance policy:

1. Notify Your Relationship Manager

   Promptly notify your assigned relationship manager about the incident.

2. Complete & Submit Claim Form

   Complete and submit the provided claim form along with relevant documentation.

3. Evaluation & Claim Registration

   Your relationship manager will transmit the submitted details to the insurer to commence the claims process.

4. Appointment of Surveyor

   The insurer will designate a surveyor to assess the situation and determine the extent of damages.

5. Document Submission

   Once the survey begins, the surveyor will guide you through the necessary documentation process. Submit all required documents as instructed for smooth claim processing.

6. Claim Settlement

   Upon conclusion of the evaluation process and approval of your claim, the insurance company will quickly disburse the claim funds to you for timely resolution of the incident.

Please note: The insurer will carefully review the terms and conditions of your policy to ascertain coverage eligibility for the reported incident. Consequently, the decision to accept or reject the claim will be made solely by the insurer.

Documents Required to File Fire Insurance Claim

Below is the list of essential documents necessary for processing any fire insurance claim:

• An authorized copy of the fire policy, which includes the schedule and clauses.
• Submit the fully completed claim form.
• A copy of the article if the incident was reported in the newspaper
• Records of previous claims, if any.
• Photographs
• Report by the fire brigade.
• Copy of FIR or police intimation

Qualifying Criteria to Buy Fire and Burglary Insurance Policy

Here are the qualifying criteria for buying a fire or stock insurance policy:

• To qualify for property insurance, you must be the rightful owner of the property you want to insure.
• Different insurance plans apply depending on the type of property (apartment, detached house, office space, or industrial property).
• Insurance companies have minimum property value requirements to provide coverage.
• Insurance companies assess the condition of the property before issuing a policy to identify potential hazards.
• When applying for insurance, you need to submit specific documents such as proof of ownership, residency, and identity.
• A clean credit history and high credit score may qualify you for lower insurance premiums.
• Older properties typically require higher insurance coverage because of increased risk.
• A history of frequent claims can affect the qualifying criteria for insurance policies.

Why Should You Purchase Fire Insurance via Policybazaar for Business?

• 365-Day Claim Assistance: Our team of experts is available every day, ensuring quick support for your claims.
• Dedicated Relationship Manager: Seek personalized assistance from a committed manager who prioritizes your needs throughout the process.
• Quotes from Multiple Insurers: Get a wide range of quotes from top insurers at competitive rates.

Fire Insurance Policy: Frequently Asked Question