Fire Insurance Policy for Non-Hazardous Goods Storage

Non-Hazardous Goods Storage Fire Insurance policy is a specific type of insurance that offers tailored financial protection for non-hazardous goods stored in facilities in the unfortunate event of fire damage. This insurance not only covers the goods themselves, but it also provides additional safeguards for any other property that may be lost or damaged as a result of a fire incident. 

This comprehensive coverage provides businesses with reassurance, knowing that they have an extra layer of protection against fire-related risks. Whether it’s the goods stored or the physical storage space itself, this fire insurance policy ensures that potential losses or damages are adequately covered, providing peace of mind to businesses and allowing them to focus on their operations with confidence.

Property Insurance

Property insurance offers financial security in the event of property damage or loss, including buildings, personal belongings, and furniture. On the other hand, fire insurance is specifically designed to address losses caused by fire, smoke, and accidental explosions. 

While both types of insurance are vital for homeowners and business owners, fire insurance is also referred to as property fire insurance as it is a specialised subset of property insurance that focuses solely on fire-related incidents and the associated risks. This means that damages to insured property will be covered only if they result from unexpected fires or perils like lightning, implosion, explosion, smoke, or thunder.

Importance of Fire Insurance Coverage for Non-Hazardous Goods Storage

Fire insurance offers protection for non-hazardous goods stored in any location, covering them against potential hazards like fire, lightning, explosions, and related risks. It also includes coverage for property damage resulting from events such as riots, strikes, and malicious acts. Additional coverage options can be added to the policy upon request, typically requiring an additional premium payment. 

The coverage for non-hazardous goods storage encompasses a wide range of risks, including fire, natural heating, fermentation, lightning-induced roof cracks, explosions, acts of terrorism, riots, strikes, natural disasters, and damages caused by bursting or overflowing water tanks that could potentially harm the stored goods.

Average Clause in Fire Insurance

The average clause of fire insurance addresses situations where the insurance coverage is insufficient. When a property covered by the insurance policy experiences partial damage from a fire or other insurable event, this clause comes into effect. It states that the insured individual is responsible for a proportional portion of the loss. 

The reimbursement from the insurer is determined by evaluating the extent and cause of the damage. Essentially, the average clauses of fire insurance prevent the insured person from claiming an amount that exceeds the actual loss caused by the fire. Its purpose is to prevent excessive compensation and uphold the principle of indemnity within fire insurance policies.

Exceptions to Fire Insurance Coverage for Storage 

Fire insurance policies often exclude coverage for inventory due to the unique considerations involved in underwriting. It is crucial to thoroughly examine the policy terms before purchasing fire insurance to ascertain the extent of coverage provided. Specifically, In fire insurance for non-hazardous goods storage fire insurance, certain situations and items may be ineligible for coverage.

Exceptions:

1. Intentional damage falls under these exceptions in insurance policies.
2. Damage arising from war.
3. Missing property.
4. Consequential losses are not part of the coverage.
5. Goods in cold storage damaged by temperature fluctuations.
6. Unoccupied storage buildings for over 90 days are an exception.
7. Valuable artwork or precious stones require explicit declaration.
8. Damage to electric machines or resulting from electricity leaks.