Fire and Special Perils Insurance

Fire is defined in insurance as the actual ignition of something that should not be on fire. The cause must be accidental or fortuitous in nature. This definition excludes deliberate acts, chemical reactions, and fire within its intended or normal confines.

However, it includes fire that spreads beyond its normal location, as well as its direct effects—such as damage caused by efforts to extinguish it (including water damage), smoke damage, collapse of a building, weather-related damage, or theft of property removed for safety within a reasonable period.

Scope of Cover

The standard fire policy covers three basic risks; 

• Fire (whether resulting from explosion or otherwise)
• Lightning
• Explosion of boilers or gas used for domestic.

This policy provides protection for fixed assets such as buildings and contents against physical loss or damage caused by fire.

Additional risks may be included upon payment of an extra premium. These include:

• Storm
• Flood
• Explosion
• Burst pipes and overflow of water tanks
• Impact by vehicles
• Malicious damage
• Earthquake
• Aircraft damage
• Bush fire
• Tornado and cyclone
• Riot and strike

Consequential Loss (Business Interruption) Insurance

This policy covers financial losses suffered by a business due to reduced earnings or increased operating costs following damage caused by an insured peril under the Fire and Special Perils Insurance Policy.

Houseowner / Householder’s Comprehensive Insurance

This policy can be taken out by property owners or tenants. It provides coverage for both buildings and contents, combining multiple classes of insurance into one comprehensive package, including:

The policy could be divided into five sections;

• Building – Covers fire, lightning, and special perils
• Contents – Covers fire, burglary, and accidental damage
• Alternative Accommodation & Loss of Rent
• Public Liability
• Personal Accident