Property Insurance

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Fire insurance plays an imperative role by shielding you against various types of losses or damages which may arise due to fire. Moreover, a fire insurance policy can be purchased by both households and business owners. Here we are talking about fire insurance policies available along with office insurance policies for people in business. However, if you are into commercial activities, there are various properties that you can cover under a fire insurance policy. The scope of a fire insurance policy includes both moveable and immoveable properties. Note, it includes all those properties which are on land and do not cover those which are in transit.

Here is the scope of the fire insurance policy

Building =

  • Both completed or under construction
  • Electricals, partitions, interiors

Plant & Machinery, Equipments & Accessories =

  • New machinery
  • Second-hand machinery
  • Obsolete machinery

Stocks =

  • Raw materials
  • Finished goods
  • In process
  • In trade which belongs to manufacturer, retailer, wholesaler

Other items, like =

  • Cables, piping
  • Furniture & fixtures
  • Tools, spares
  • Household items, etc.

In addition to the above, there are other specific items like works of art, manuscripts, precious stones, coins, stamps, account books, cheques, explosives, etc.

There are various items that you can cover under a fire insurance policy. Talk to the corporate insurance advisor to get more information on this,

Read More: Who Should Buy Fire Insurance Policy?

Case: 1

After spending six years in the corporate world, Rajni Sikka started her own fashion house. And, with a workforce of 20, she started her fashion house in Mumbai. However, soon after she shifted, a fire erupted at her neighborhood shop. Though no one was physically hurt, goods worth Rs 50 lakh got damaged. Unfortunately, the owner of that shop did not have fire insurance and due to which the owner had to incur all the losses on their own.

Taking the lesson from the incident, Rajni decided to buy fire insurance for her fashion house as well. As finance was a constraint, Rajni had purchased old machinery and furniture for her fashion house. Therefore, she was skeptical about whether the fire insurance would be offered to her or not. However, she contacted the fire insurance company who told her that old machinery and furniture also came under the scope of fire insurance.

Rajni calculated the cost of items that she wanted to cover, and communicated the same to the fire insurance company who agreed to cover her under the fire insurance policy.

Here, it is important to note, though Rajni had old machinery and furniture, they came under the scope of fire insurance, and therefore, she got fire insurance, in the same manner, she would have got if she had new items.

Case: 2

R.S Gallery houses paintings and sculptures belonging to some great artists of India. The owner of the gallery, Rajiv Saxena is himself a great art lover, and therefore, he takes every effort, like installing CCTV cameras, fire extinguishers, etc.; to secure it. One day when his friend visited his gallery, he advised him to purchase a fire insurance policy to get coverage in case a fire happens.

Many times, accidents happen not only due to human-made perils but also due to natural perils which are beyond control. Then, Rajiv realized his mistake and how much he was putting his gallery’s safety at risk by not purchasing fire insurance.

Read More: How is Indemnity Estimated in Fire Insurance?

After carefully scrutinizing all the available fire insurance policy options, Rajiv approached Insurer A to get fire insurance. Here, the insurer agreed to issue a fire insurance policy to Rajiv to cover his art gallery. As the gallery has paintings and sculptures, the insurer customized the policy as per the requirement of Rajiv. Further, due to the cost of the items which Rajiv wanted to insure, the fire insurance company also charged slightly high premium rates.

Here it is important to note, Rajiv has an art gallery with paintings and sculptures, it comes under the scope of the specific item category of fire insurance policy, and therefore, the insurer covers them as well.