Thursday, October 8, 2009


Fire insurance provides insurance protection against loss of, or damage to the insured property, resulting from an unforeseen fire. The usually standard fire insurance policy covers damage to property caused by fire, lightening or explosion brought about by domestic use of gas or boilers.
The scope of fire insurance is not limited to the three mentioned perils: fire lightening or explosion (domestic not industrial use) other perils normally added on payment of extra premiums are termed special perils. These include damage to the property caused by the following perils among others: storm, tempest or flood impact, burst pipes, earthquake, aircraft, riot, civil commotion, malicious damage, explosion (industrial usage) etc.
Any of such perils covered in any fire insurance policy, are usually expressed in the policy document or by an endorsement attached to the policy. There is additional insurance normally attached to fire insurance especially fire policy on industrial properties (business properties). This additional coverage extended on payment of extra premium is termed consequential loss or loss of profit insurance. It provides Indemnity to the insured for loss of profits sustained as a result of interruption of business by fire.

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