Fire Insurance – Protection Against Fire & Allied Risks

What is Fire Insurance?

Fire Insurance is a type of general insurance that provides financial protection against loss or damage to property caused by fire and allied perils. It covers buildings, machinery, stock, furniture, and other assets against losses due to fire incidents. At Insure n Invest – Mr. Vinod Goel, fire insurance solutions are structured to safeguard your property, business continuity, and financial stability.

Why is Fire Insurance Important?

Fire accidents can cause severe financial loss and disrupt business operations or household security. Fire insurance helps in compensating for property damage, protecting investments, ensuring quick recovery, and maintaining financial stability after an unexpected event.

Types of Fire Insurance Policies

Standard Fire & Special Perils Policy

This is the most common fire insurance policy covering fire and allied risks such as lightning, explosion, storm, flood, earthquake, riot, strike, and malicious damage.

Industrial Fire Insurance

Designed for factories and manufacturing units, this policy covers plant, machinery, raw materials, and finished goods against fire-related risks.

Commercial Fire Insurance

Suitable for shops, offices, warehouses, hotels, and commercial establishments to protect assets and stock.

Home Fire Insurance

Covers residential buildings and household contents against fire and related perils.

What is Covered Under Fire Insurance?

Fire insurance generally covers loss or damage due to fire, lightning, explosion, implosion, aircraft damage, storm, flood, inundation, earthquake, riot, strike, malicious damage, and impact damage.

What is Not Covered?

Loss due to war, nuclear risks, intentional damage, normal wear and tear, electrical or mechanical breakdown without fire, and losses arising from policy violations are excluded.

Sum Insured in Fire Insurance

The sum insured should represent the reinstatement or market value of the property. Underinsurance may result in reduced claim settlement under the average clause.

Claim Process in Fire Insurance

In case of a fire loss, immediate intimation to the insurer is required. Steps include lodging an FIR if needed, minimizing loss, surveyor inspection, submission of documents, and claim settlement after assessment.

Tax Benefits of Fire Insurance

Fire insurance premiums are not directly eligible for tax deductions. However, for businesses, premiums may be treated as allowable expenses under business income.

Advantages of Fire Insurance

Fire insurance protects valuable assets, ensures financial security, supports business continuity, reduces recovery time after loss, and offers peace of mind.

Limitations of Fire Insurance

Policies have exclusions, deductibles, and specific conditions. Accurate disclosure of asset value and risk details is essential to avoid claim disputes.

Who Should Buy Fire Insurance?

Homeowners, shop owners, business operators, industrial units, warehouse owners, and commercial establishments should opt for fire insurance to protect their assets.

How to Buy Fire Insurance?

Fire insurance can be purchased through insurers or authorized advisors. At Insure n Invest – Mr. Vinod Goel, policies are customized after assessing property value, risk exposure, and coverage needs.

Conclusion

Fire insurance is a critical safeguard against unpredictable fire-related losses. Adequate coverage ensures financial stability and faster recovery after disasters.

Insure n Invest – Mr. Vinod Goel
Protect Assets • Prevent Loss • Preserve Wealth