Why Do We Need Fire Insurance?


Massive Fire in Mumbai’s Kamala Mills Compound Tragedy struck on the 29th of December with a fire breaking out in a pub in a building in the Kamala Mills compound. What should various Restaurants,Offices, Manufacturing Units, Godowns, Service Oriented Enterprises

Should learn from this incident Machinery&various other assets and are constantly exposed to risks, which can disrupt their daily working. It is important for all to have a Fire Insurance to financially protect themselves against losses or damages

A Fire Insurance Policy covers the financial loss which insured may suffer due to destruction of or damage to property or goods, caused by fire, during a specified period and up to agreed amount.

Importance of Fire Insurance Policy:

  • Cover Against Natural disaster
  • Protection to your valuable assets like building, machinery etc
  • Reduces the Financial Burden
  • Financial support at the time of Restart of Business

Risks covered under Fire Insurance Policy are:

  • FireBush Fire
  • Lightning
  • Subsidence and landslide including Rock slide
  • Explosion/Implosion
  • Riot, Strike, Malicious Damage
  • Storm, Typhoon, Hurricane, Tornado, Flood and Inundation  and many more..

Procedure for settlement of Claim:

Few instances of the losses which are not covered by fire insurance policy:

  1. Negligence
  2. Loss or damage of property due to nuclear perils war, invasion, act of foreign enemy
  3. Electrical/mechanical breakdown due over running or excessive usage
  4. Pollution or contamination
  5. Loss by theft during or after the happening of fire

Consult a Professional to know more about what can be covered under the policy before buying the Policy.

Go for optimum coverage and not just get attracted by cheaper Premium Amount.