The most popular property insurance is the standard fire insurance policy. The fire insurance policy offers protection against any unforeseen loss or damage to/destruction of property due to fire or other perils covered under the policy.
What a Fire Policy covers:
Thought it is called ‘Fire Insurance’, apart from the risk of fire, it also offers cover against
Riot, strike and malicious damage
Storm , cyclone, typhoon, hurricane, flood and inundation
Subsidence and landslide including rockslide
Bursting and/or overflowing of water tanks, apparatus and pipes
Missile testing operations
Accidental leakage from automatic sprinkler installations
Bush fire etc.
What a Fire Policy excludes:
A fire insurance policy usually does not cover a certain amount known as “excess” under the policy. Loss or damage caused by war and warlike operations, nuclear perils, pollution or contamination, electrical/mechanical breakdown, burglary and housebreaking are excluded. Certain perils like earthquake, spontaneous combustion etc can be covered on payment of additional premium.
Fire insurance policies are issued for one year except for dwellings, where a policy may be issued for long term (with a minimum period of three years).