What are the major exclusions under Fire Insurance Policy?

The scope of fire insurance is quite extensive. The policy covers almost all types of damages which are caused due to fire and other allied perils. However, there are some exclusions too in the policy. These exclusions specify when the coverage under the fire insurance policy would not apply. 

The list of exclusions is common under most fire insurance policies though they might be offered by other insurance companies. This list is as follows –

  • Any type of loss or damage which is caused due to war and related perils like invasion, civil commotion, military revolution,  civil war, rebellion, etc.
  • Any type of loss or damage which is caused due to nuclear contamination, radiation or related perils
  • Any type of loss or damage which is caused by contamination or pollution. However, if there is contamination or pollution which happens due to an insured peril, such pollution or contamination would be covered. However, if the peril which is insured under the policy, happens due to pollution, the damages suffered would not be covered
  • Aircraft damages which happen due to pressure waves
  • Any type of loss or damage which is caused due to earthquakes, volcanic eruptions, etc. However, fire insurance policies provide extension coverage for these instances. The policyholder can get coverage for them by opting for the extension cover.
  • Things like artwork, money, important documents, precious stones, etc. would not be covered under a standard fire insurance policy. To avail coverage for them, their particulars should be clearly detailed when buying the policy
  • Any type of loss or damage in cold storage if there is a change in temperature
  • Any type of loss or damage caused to the electrical equipment, apparatus, furniture and fixtures, etc. which happens due to short circuit, over usage, extreme pressure, etc.
  • Any type of loss of valuables belonging to the policyholder from theft, burglary or housebreaking either before the peril happens or after there has been damage. 
  • Costs of surveyors, engineers, architects, etc. would not be covered under the plan. However, there is an extension available for covering these costs. The policyholder can buy the extension and get these costs covered
  • The costs incurred in removal of debris after the damage has been done are not covered. This coverage can also be availed by choosing the debris removal extension under the policy.
  • Any type of consequential losses are not covered under the plan
  • Loss of earning or loss due to delay in production after damage has occurred is not covered 

Besides these exclusions, fire insurance policies also have an excess clause. Under this clause, in every instance of claim, the limit of excess would have to be borne by the policyholder. The insurance company would then pay the remaining claim. For instance, if the excess limit is INR 10,000 and the claim is INR 25,000, the insurance company would pay INR 15,000 and the remaining INR 10,000 would have to be borne by the policyholder.

So, these are the common exclusions under fire insurance policies. The policyholder should know these exclusions so that he/she might know when to make a claim under the policy.