What is Fire & Perils Insurance?

A sort of insurance coverage known as fire and perils insurance, or property insurance, guards against loss or damage to property brought on by a variety of dangers, such as fire and other specified hazards. To recover monetary losses as a result of property damage this type of insurance is designed to help businesses or property owners.

Key features of Fire and Perils Insurance may include coverage for the following perils:

1. Fire: Protection against damage caused by fire, which can include damage to buildings, contents, and other property.

2. Explosion: Coverage for damage resulting from explosions, whether caused by natural events or accidents.

3. Lightning: Protection against damage caused by lightning strikes.

4. Earthquake: Some policies may include coverage for earthquake damage, although earthquake insurance is often a separate policy.

5. Flood: In some cases, flood coverage may be included, but it's more commonly a separate policy due to the specific nature of flood risks.

6. Storms: Damage caused by storms, including windstorms, hailstorms, and other severe weather events.

7. Theft: Coverage for losses resulting from theft or burglary.

8. Vandalism: Protection against intentional damage to property by vandals.

9. Riots and Civil Commotion: Coverage for damage caused by civil unrest or riots.

The specific perils covered can vary depending on the policy and the insurance provider. Property owners can choose the level of coverage based on their needs and the risks associated with their location and type of property.

Individuals and organizations should carefully check the terms and conditions of their Fire and Perils insurance policy to understand what is covered and any exclusions or limits that may apply. To further tailor insurance coverage to particular requirements, several policies may offer additional coverage options or endorsements.

Benefits Of Fire & Perils Insurance

1.    Coverage against all: Indemnifies against perils arising from fire, lights, explosion, flood, hurricane, earthquake, terrorist activities and civil commotions.

2.    Only for owners: Only house or apartment owners can buy this plan and not tenants.

3.    Full Coverage: It indemnifies the building as well as everything in it.

4.    Immediate effects: It indemnifies the building as well as everything in it.

5.    Long lasting protection: A distinctive housing insurance plan that offers long lasting protection which is particularly effective for hypothecated assets.

WHAT IS THE BASIS OF THE POLICY COVER?

This policy covers various assets like Building, Plant & Machinery, Stock, Furniture, Fixtures and other immovable and movable assets against loss or damage due to:

•  Fire.
•  Lightning.
•  Explosion / Implosion.
•  Aircraft Damage.
•  Riot, Strike, Malicious Damages.
•  Storm, Tempest, Cyclone, Typhoon, Hurricane, Tornado, Flood, Inundation.
•  Impact damage.
•  Subsidence, Landslide and Rock slide.
•  Missile Testing operations.
•  Bush Fire.
•  Bursting and/or overflowing of Water Tanks, Apparatus and Pipes.
•  Leakage from Automatic Sprinkler Installations.

ARE THERE ANY ADD-ON COVER OPTIONS AVAILABLE WITH THIS POLICY?

Further, on payment of additional premium, the following additional coverages can be opted:

• Architects, Surveyors & Consulting Engineers fees (in excess of 3% of claim amount).
• Debris Removal (in excess of 1% of claim amount).
• Deterioration of Stock in Cold Storage.
• Fire in the Forest.
  Effects of the insured's own automobiles, etc.
• Spontaneous combustion.
• Omission to insure Additions, Alterations or Extensions.
• Earthquake (Fire & Shock).
• Spoilage Material Damage Cover.
• Leakage & Contamination Cover.
• Loss of Rent.
• Alternative Accommodation.
• Start Up Expenses.
• Terrorism Cover.

WHAT ARE THE MAJOR EXCLUSIONS UNDER THIS POLICY?

We would like you to be familiar with some of the major exclusions under the Policy. This will ensure you are not put to any kind of inconvenience while making your claim. At SBI General, we endeavour to make our Policy as transparent as possible.

•  Excess under the policy.
•  War and war like perils.
•  Nuclear risks.
•  Pollution or contamination even caused by insured perils.
•  High value items like gold, cash unless specified.
•  Stocks inside the Cold Storage.
•  Damage to equipment caused by electrical short circuit. However subsequent damages arising out of such fire is covered.
•  Expenses incurred towards Architects, Surveyor's & Consulting Engineer's fees in excess of 3% of claim amount.
•  Expenses incurred towards removal of debris in excess of 1% of claim amount.
•  Loss of earnings, markets, loss by delay, any other consequential losses.
•  Spoilage of material due to stoppage even though stoppage may be due to operation of perils insured.
•  Loss by theft during or after the occurrence of any loss/peril.
•  Earthquake, volcanic eruption.
•  Property not in the premises or removal of property to any other premises except machinery sent for repairs/cleaning for a period of 60 days.

Introductory Video