Insurance that offers protection of your property against fire-related damages is called ‘Fire Insurance’. However, this insurance is completely different from property insurance where the inclusion list includes the expenses incurred during reconstruction, repair or replacement of not only the insured property, but also nearby affected structures if any. Other coverages include damage to the personal property other than the insured and expenses of those who are affected due to the property damage.

• Fire insurance offers complete protection against damage, due to fire explosion, caused to movable or immovable property.
• Fire insurance includes damages to the properties including an office building, furniture, plan, stock, machinery etc.
• Other than fire perils, this policy also includes damages due to natural disaster, landslide, explosion, bursting of water tank etc.

• Specific policy: In this policy, a specified sum insured is decided for a certain property and in the event of any loss, the actual loss doesn’t exceed the chosen insured amount.
• Comprehensive policy: This policy offers coverage, not only, against fire-related accidents but, also covers you against other risks including theft, lightning, burglary, civil commotion, damage or loss due to pests etc.
• Valued policy: At the time the policy initiates, the value of the property is decided. Instead of the current market value, the indemnity of the policy is decided based on the value of the property. So, the value agreed during the time of the inception of the policy is the deciding factor of policy indemnity here.
• Floating policy: This is beneficial if you deal with fluctuating stocks in different areas. This policy offers coverage for one or more goods at the same time under one sum assured and one premium.
• Valuable Policy: Under this policy, the claim amount is determined based on the present market price of the damaged property.

• Contract of Good Faith – The policy is based on good faith between the insurer and the insured. At the time of policy initiation, both the parties must reveal all the material facts.
• Contract of Indemnity – It is an indemnity policy where the insurer is only liable to cover the actual loss that occurred. Even in case of a fire, if there is no loss, no insurance liability is offered.
• One-year Policy – The tenure of this policy is one year and can be renewed as per the defined terms and conditions.
• Insurable Interest – This policy is valid only if the insured has an insurable interest in the insured property. Such interest is required while a loss occurs. With this, the insured is benefitted by the survival of the insured property and faces a loss in case of its destruction.
• Personal Insurance Contract – This policy requires complete transparency. The insurer must know about the behaviour of the insured. Also, the policyholder, only, can transfer the policy with the consent of the insurer and the insurer is authorised to terminate the policy in case their possession of goods is transferred to a third-party.
• Personal right – The person whose name is mentioned in the policy document is entitled to receive the insured amount in case of any loss or unforeseen event that causes damage.
• Direct loss – One can avail this only if the fire is the root cause of the loss or damage.
• Description of property – This insurance needs a proper description of the property. The location should be mentioned in the policy document. The reason is that the insurer only settles the claim when the incident happens at the insured place. In case you make any change, the insurer should be informed immediately to avoid future consequences.

On payment of an additional premium, the insured can be entitled to below add-on coverage:

• Earthquake
• Wreckage removal
• Forest fire
• Loss of rent
• Startup cost
• Alternate accommodation
• Spontaneous burning
• Damage to stock due to change of temperature
• Leakage and contamination cover
• Architect, engineers, Surveyors consultation fee
• Cover for molten metal spillage
• Impact loss owing to insured’s own road/rail transit