• In the real world, no outcome is assured. Fires, explosions, floods, and other disasters can occur unexpectedly, leaving you in turmoil. Fire stands as one of the most significant risks to a business. In the absence of fire insurance coverage, you will bear the expense of rebuilding and repairs on your own. Such enormous costs could lead to a halt in your company’s operations. Adequate fire and special perils insurance can help mitigate a substantial financial loss resulting from fire and other associated risks covered by the policy.

What is the Standard Fire and Special Perils Policy?

• Standard fire and special perils (SFSP) insurance is a traditional insurance policy that safeguards your property and its contents against damage or loss due to fire and other risks. It protects not just your residence, but also provides coverage for adjacent structures and personal effects. Fire insurance policies are typically renewed annually. However, many insurers are now providing long-term policies with a three-year duration to cover ‘dwellings. ’

What is included in the policy?

The insurance encompasses a wide range of assets, including:
● Buildings, equipment, and machinery
● Instruments and associated items
● Tools
● Fittings and fixtures
● Electrical installations within furniture
● Specific items listed

The coverage is extensive and addresses a diverse array of risks. The following perils are included:
● Fire
● Lightning
● Damage from aircraft
● Explosion
● Impact damage, such as that caused by vehicles, trains, or an animal belonging to a third party
● Natural disasters
● Riots, strikes, intentional damage, and terrorism
● Landslide
● Flooding from ruptured water tanks and machinery
● Leakage from automatic sprinkler installations
● Operations to test missiles
● Bushfire

Additional coverage might be offered by insurers for an extra charge. The following add-ons are available:
● Cleanup of debris
● Fees for surveyors, architects, and consulting engineers
● Wildfire occurrences
● Spontaneous combustion
● Cold storage stock deterioration
● Coverage for spoilage material damage
● Protection against contamination and leakage
● Coverage for startup costs
● Loss of rent coverage
● Coverage for alternative accommodation

What isn’t included in the policy?

While the insurance covers a wide range of risks, certain exclusions apply. Some examples of typical exclusions include:

● Nuclear risks
● War-related dangers such as conflict, mutiny, invasion, and civil war
● Contamination and pollution
● Cold storage stocks
● Power outages
● Theft and break-ins
● Any kind of consequential losses

Who is eligible to purchase the policy?

● Owners of the building, as well as the contents contained within, such as furniture and other household items
● Hospitals, clinics, hotels, diagnostics, accommodations, and other service providers
● Retailers
● Manufacturers
● Institutions of higher education and research
● Financial institutions
● Mortgagees and mortgagors
● Carriers
● Stock market traders
● Trustees and charitable trusts
● Keepers of the warehouse

Wrapping Up

• Standard fire and special perils insurance policies have been customized to address your particular requirements. Ensure that you assess your insurance at least annually to determine if additional coverage is necessary. Being underinsured is just as detrimental as being uninsured. To protect your valuable possessions, review the policy in detail and thoughtfully select the coverage limit.

Disclaimer:

• The information provided above is for illustrative purposes only. For further information, please consult the policy wording and prospectus prior to finalizing the sale.