Here are 10 FAQs on Fire insurance in India:
Q1. What is fire insurance?
Fire insurance is a type of property insurance that protects against financial losses arising from damages or destruction to your property or belongings due to fire or other related perils.
Q2. What does standard fire insurance cover?
The Standard Fire and Special Perils (SFSP) Policy covers damages caused by:
- Fire
- Lightning
- Explosion/Implosion
- Riots, strikes, malicious damage
- Natural calamities like storms, floods, earthquakes
- Damage caused during fire-fighting operations
Q3. What types of fire insurance policies are available in India?
Specific Policy: Covers a specific property for a declared sum insured.
Floater Policy: Covers multiple properties under a single policy, ideal for businesses with goods at different locations.
Comprehensive Policy: Combines fire insurance with other covers like burglary, loss of profits due to fire, etc.
Q4. Can I get fire insurance for my residential property?
Yes, fire insurance is suitable for homes, apartments, and residential buildings. It typically protects the structure, contents, or both.
Q5. Does fire insurance cover damages from electrical short circuits?
Usually, the standard fire policy covers damage caused by fire due to electrical short circuits.
Q6. What is the difference between reinstatement value and market value in fire insurance?
- Reinstatement Value: Costs involved in rebuilding or replacing a damaged property to its original condition.
- Market Value: The current selling price of the property, factoring in depreciation.
Q7. What factors influence my fire insurance premiums?
- Type and value of the property
- Location (areas with higher fire risk may attract higher premiums)
- Construction material (fire-resistant materials may lead to lower premiums)
- Safety measures and fire protection systems in place
Q8. What are exclusions in a fire insurance policy?
- Damage caused by war, invasion, or nuclear perils
- Losses due to theft during a fire
- Loss or damage caused by your own willful negligence
- Refer to the policy document for a complete list of exclusions.
Q9. How do I file a claim under fire insurance?
Inform the insurer and the fire department immediately.
File an FIR with the police, if needed.
Submit a claim form with supporting documents (photographs of damage, fire brigade report, etc.) The insurer appoints a surveyor to assess the loss and approves the claim amount
Q10. Is fire insurance mandatory in India?
Fire insurance is not legally mandatory in India. However, it’s strongly recommended for both residential and commercial properties to safeguard against financial losses due to fire accidents.
