A standard fire and special perils insurance is a policy/contract that insures to cover any damages or losses that may occur to a property within a specified period that is mentioned in the policy/contract. Normally, a Standard Fire and Special Peril insurance is a contract for one year and it is renewed annually.

The claim under the fire insurance policy is adjusted against the appreciation and depreciation caused due to the effect of inflation.

Standard Fire insurance has two components attached to it. Special Perils and Fire Insurance, of course. Now, fire insurance, as suggestive as it is, protects your assets including, building, furniture fixtures, electronic equipment, stock, plant & machinery, and raw materials from the risk of catching fire. This insurance policy also protects the insured goods from some special perils apart from a fire that may destroy the good partially or completely. 

Lightning: Any damage caused by lightning is covered and is mentioned as a special peril in Fire Insurance Policy

Explosion/Implosion: Any damage that is caused to a property/goods/special equipment due to an explosion or an implosion is covered as a special peril in a fire insurance policy. There are some exceptions and these are mentioned right below. 

Excluding loss, destruction of or damage:

a) Equipment like boilers (other than domestic boilers), economizers or other vessels, machinery or apparatus(in which steam is generated) or their contents that result from their own explosion/implosion,

b) Any explosion or implosion caused by centrifugal forces.

 Damage caused by an Aircraft: 

Any loss, damage, or destruction that is caused due to an Aircraft or any other aerial vehicles or articles dropped from the air are covered as a special peril under a Fire Insurance policy.

The only exception is the damage that is caused due to pressure waves.

Riots, Strikes and Malicious Damages:

Any loss, damage, or visible destruction that is caused due to an external violent act or method is also considered a special peril and is covered in Fire Insurance.

Terrorism Damage Exclusion Warranty:

This Policy excludes loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any act of terrorism regardless of any other cause or event contributing concurrently or in any other sequence to the loss.

For the purpose of this exclusion, an act of terrorism means an act or series of acts, including but not limited to the use of force or violence and/or the threat thereof, of any person or group(s) of persons, whether acting alone or on behalf of or in connection with any organisation(s) or government(s), or unlawful associations, recognized under Unlawful Activities (Prevention) Amendment Act, 2008 or any other related and applicable national or state legislation formulated to combat unlawful and terrorist activities in the nation for the time being in force, committed for political, religious, ideological or similar purposes including the intention to influence any government and/or to put the public or any section of the public in fear for such purposes.

This exclusion also includes loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any action taken in controlling, preventing, suppressing or in any way relating to the above.

Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, or flood:

Any loss, destruction, or catastrophe that occurs due to a storm, hurricane, tornado, flood, typhoon, and tempest are covered as a special peril.

Impact Damage:

Any loss or physical damage that is caused due to a severe impact by any road or rail vehicle that is owned by the insured or the employees of the insured is also covered as a special peril.

Landslides and Rockslides:

Loss or damage to a property caused by a landslide or a rockslide on which the property stands is also counted as a special peril.

a) the normal cracking, settlement or bedding down of new structures

b) the settlement or movement of made up ground

c) coastal or river erosion

d) Defective design or poor workmanship in the structure

e) Damage caused by demolition, construction, structural changes, or repair in the groundwork of any kind.

Bursting and/or overflowing of Water Tanks, Apparatus and Pipes

Damage caused by Missile Testing operations is also covered as a special peril under Fire Insurance

Damages from leakage from Automatic Sprinkler Installations is also a special peril under.

Excluding loss, destruction or damage caused by:

a) Repairs or alterations to the buildings or premises

b) Repairs, Removal or Extension of the Sprinkler Installation

c) Defects in construction known to the Insured.

Loss of property/raw material caused due to Bush Fire is covered under special perils excluding loss, destruction or damage caused by Forest Fire PROVIDED that the liability of the Company shall in no case exceed in respect of each item the sum expressed in the said Schedule to be insured thereon or in the whole the total Sum Insured hereby or such other sum or sums as may be substituted therefor by memorandum hereon or attached hereto signed by or on behalf of the Company.

So here are all the perils that are offered in fire insurance. If you want quick, innovative & low-cost insurance solutions with options from multiple insurance companies, online at the click of the button, then visit JInsurance.com.