A fire insurance policy covers the financial loss which insured may suffer due to damage to property or goods, caused by fire, during the policy period and up to the insured amount.

The policy specifies the maximum amount, which the insured can claim in case of loss. The loss can be ascertained by a licensed surveyor & loss assessor. The insurer is liable to make good the actual amount of loss not exceeding the maximum amount fixed under the policy.

Coverage Includes 

  • Fire
  • Lightning
  • Explosion/Implosion
  • Aircraft Damage
  • Riot, Strike, Malicious Damage
  • Storm, Typhoon, Hurricane, Tornado, Flood and Inundation
  • Impact damage
  • Subsidence and landslide including Rock slide
  • Bursting and overflowing of water tanks, apparatus and Pipes
  • Missile testing operations
  • Leakage from Automatic Sprinkler Installation
  • Bush Fire

Types of Fire Insurance Policies 


  • Comprehensive policycovers risks like fire, theft, burglary, third party risks, etc. It may also cover loss of profits during the period the business remains closed due to fire.
  • Valued policycan be issued only for the properties where the Market Value cannot be ascertained for example Curios, Works of Art, Manuscripts, Obsolete Machinery and the like items, subject to the valuation certificate being obtained and found Acceptable by the Insurer. Under it the insured can recover a fixed amount agreed to at the time the policy is taken. In the event of loss, only the fixed amount is payable, irrespective of the actual amount of loss.
  • Floating policyis a policy which covers loss by fire caused to property belonging to the same person but located at different places under a single sum insured and f premium. Such a policy might cover goods lying in various warehouses  different locations.
  • Re-instatement value policyis a policy in which the insurer inserts a re-instatement clause, whereby he undertakes to pay the cost of replacement of the property damaged or destroyed by fire. Thus, he may re-instate or replace the property instead of paying cash.

In addition, there are many more kind of policies designed as per specific need of the consumers.


In case of mishap, take the following steps immediately:

  • Inform losses or damages immediately to the insurance company so that a competent surveyor can come to ascertain total losses
  • Give the estimated figures of damages
  • Give full corporation to surveyors by giving them all the necessary documents for assessment of the loss
  • Corporate with the insurer or their surveyor in all their activities of entering the premises, taking possession of properties, sorting, removing, etc.; without prejudice

Give information about all other insurance policies existing on the properties at the time


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