Fire Insurance
What is Fire Insurance?
Fire Insurance is a critical form of property protection that covers damage or loss caused by fire,
lightning, explosions, and other natural calamities. Whether you are a homeowner protecting your
sanctuary or a business owner safeguarding your warehouse, factory, or office, a fire insurance policy
ensures that your physical assets are restored or replaced without causing a financial catastrophe.
A standard policy, often known as the Standard Fire and Special Perils (SFSP) policy, goes beyond just
"fire"—it protects against a wide range of "special perils" including floods, storms, and riots. At
DigiAssure, we provide comprehensive fire insurance solutions that cover buildings, machinery,
furniture, and inventory, backed by a robust loss-assessment framework to ensure your path to recovery
is fast and transparent.
Scope of Standard Coverage
1. Fire & Lightning
Covers accidental fires and damage resulting from lightning strikes, which are the most common causes of significant property loss.
2. Explosion / Implosion
Covers damage caused by accidental explosions (except those from industrial boilers) or implosions that cause structural damage.
3. Natural Calamities (STFI)
Provides robust protection against Storm, Typhoon, Flood, and Inundation. This is essential for properties in coastal or flood-prone regions.
4. RSMD Perils
Covers damage resulting from Riots, Strikes, and Malicious Damage, ensuring your assets are safe during social unrest or targeted vandalism.
Key Features of Our Plans
Structure & Contents
Simultaneous coverage for the building structure and all internal contents like machinery, furniture, and fittings.
Stocks Protection
Comprehensive cover for raw materials, semi-finished goods, and finished inventory against fire and natural perils.
Reinstatement Value
Option to settle claims based on the cost of replacing the property with a new one of same kind, without depreciation.
Business Interruption
Covers the loss of profits and fixed expenses if your business operations are halted due to a fire-related incident.
Rent Protection
Provides compensation for the loss of rent or the cost of alternative accommodation if your property becomes uninhabitable.
Escalation Clause
Automatically increases your sum insured periodically to account for inflation in property and construction costs.
Fire vs Home Insurance
Which one is right for your property protection needs?
| Feature | Standard Fire Policy (SFSP) | Comprehensive Home Insurance |
|---|---|---|
| Primary Focus | Structure & Business Assets | Complete Household Protection |
| Fire & Perils | Yes (Comprehensive) | Yes (Included) |
| Burglary & Theft | Optional (Add-on) | Core Benefit |
| Public Liability | No | Included |
| Business Inventory | Highly Specialized | Not Covered |
| Usage | Residential & Commercial | Strictly Residential |
| Jewelry/Valuables | No | Covered |
Coverage Breakdown
Understand the boundaries of your fire insurance policy.
What is Covered
Standard perils included in the policy:
- Accidental Fire & Lightning
- Floods, Inundation, Storm & Typhoon
- Riots, Strikes & Malicious Damage
- Impact damage (by vehicles/animals)
- Aircraft damage & Satellite falls
- Missile testing operations
What is NOT Covered
Standard policy exclusions:
- Spontaneous combustion (unless added)
- War, Invasion & Act of Foreign Enemy
- Nuclear risks & Ionizing radiation
- Theft during or after a fire
- Pollution or contamination damage
- Burning by order of public authority
Essential Add-On Covers
Customize your fire policy for complete peace of mind.
Terrorism Cover
Extends the standard fire policy to cover damage or loss caused by acts of terrorism. This is highly recommended for commercial properties in high-density urban areas.
Architects & Surveyors Fees
Covers the professional fees (up to 7.5% of claim value) paid to architects or surveyors for planning and overseeing the reconstruction of the damaged property.
Debris Removal
Covers the significant cost of clearing the rubble and debris from the site after a major fire, before reconstruction can begin.
Spontaneous Combustion
Essential for storage facilities containing materials like coal, paper, or chemicals that can catch fire on their own due to internal heat buildup.
Factors Affecting Fire Premiums
How we determine the best rates for your property protection.
1. Type of Property & Usage
Residential buildings have lower risk profiles compared to manufacturing units, chemical plants, or retail showrooms.
2. Nature of Occupancy
Storing hazardous or inflammable materials (like oil or textiles) will lead to higher premiums compared to storing non-combustible goods.
3. Proximity to Fire Station
Properties located closer to fire stations or with easy access for fire tenders may qualify for better premium rates.
4. Safety Measures Installed
The presence of fire extinguishers, automatic sprinklers, smoke detectors, and fire hydrants can earn you significant discounts.
5. Construction Material
Buildings made with high-quality, fire-resistant materials (RCC) are cheaper to insure than those with wooden or temporary structures.
Documents Required
Keep these ready for a quick and easy onboarding process.
Valuation Reports
- Recent Property Valuation Report
- List of Contents (Machinery/Furniture) with costs
- Audit reports for stocks/inventory (for businesses)
Property Documents
- Ownership Deed or Lease Agreement
- Approved Building Plan
- Fire Safety Audit Certificate (if applicable)
Business Documents
- Company Registration (Incorporation/GST)
- Company PAN Card
- Authorised Signatory Details
Previous Insurance
- Last Year's Fire Policy Schedule
- Claim History for the last 3-5 years
- No Claim Bonus (NCB) certificate (if any)
Fire Insurance Claim Process
Step-by-step guide to navigating the recovery process after a fire.
Fire Brigade Report
Immediately call the fire department. Their official report (Fire Brigade Report) is mandatory for any claim.
Insurer Notification
Inform DigiAssure or the insurer within 24 hours. Early notification ensures faster surveyor deployment.
Loss Mitigation
Take all reasonable steps to prevent further damage (e.g., stopping leaks, moving unburnt inventory).
Surveyor Assessment
A licensed surveyor will visit the site to assess the extent of damage and verify the cause of fire.
Salvage Disposal
The surveyor will decide on the value of damaged goods (salvage) which is deducted from the final claim.
Claim Submission
Submit the claim form with the Fire Report, FIR (if any), and valuation/purchase bills for lost items.
Final Report
The surveyor submits a final assessment report to the insurance company based on the evidence provided.
Settlement
Once the report is accepted, the claim amount is credited to your bank account to start reconstruction.
Frequently Asked Questions
Common questions about Fire Insurance answered.
Does Fire Insurance cover damage from a gas cylinder blast?
Yes, the Standard Fire and Special Perils policy covers damage caused by accidental explosions and implosions, which includes domestic gas cylinder blasts.
What is the difference between 'Market Value' and 'Reinstatement Value'?
Market Value pays the current value after deducting depreciation. Reinstatement Value pays the cost of replacing the item with a new one of same type and capacity, without deducting depreciation.
Are stocks of my business covered during transit?
No, Fire Insurance only covers assets at the specific location mentioned in the policy. For goods in transit, you should opt for a Marine or Transit Insurance policy.
Does it cover damage due to Short Circuits?
Fire insurance covers damage to the property caused by fire that started from a short circuit. However, the specific electrical equipment where the short circuit occurred may be excluded under 'Electrical Risk'.
Can I insure a rented office or home?
Yes, as a tenant, you can insure the 'Contents' (machinery, furniture, stocks) you own. The owner of the property should separately insure the 'Structure'.
Is theft covered if it happens during the fire?
Standard fire insurance does not cover theft or burglary. To cover theft during or after a fire, you must have a Burglary add-on or a separate Burglary insurance policy.