Fire and allied perils insurance covers buildings and contents against; fire, explosion, lightning, earthquake, riot, strike, malicious damage, storm, flood, burst pipe, impact by aircraft, road vehicles and related perils.
Meaning of Fire in Insurance
Fire is the actual ignition of something that should not be on fire, the cause being accidental or fortuitous. There are three conditions which must be fulfilled to constitute fire in the insurance sense. These are:
There must be actual ignition.
There must be something on fire that ought not to be on fire.
The fire must be accidental or fortuitous in its origin in as far as the insured is concerned.
Fire insurance business can be broadly taken as:
Fire Insurance Business- Domestic Risks
This is fire insurance of risks which are of private or personal use that is, other than commercial or industrial use.
Fire Insurance Business—Industrial and Commercial Risks
This means fire insurance of commercial or industrial risks which are not domestic risks.
What can be covered:
Contents (Plant & machinery, furniture fixtures & fittings, office equipment)
Stock in trade
The damage to the insureds’ property caused by the following perils is covered:
Riot and strike/malicious damage.
Special perils A to H which, snow, wind, hurricane, cyclone, tornado or typhoon, flood or rain, impact, aircraft or articles falling, subterranean fire.