New Delhi – Fire can cause immense damage to homes, businesses and belongings. Understanding the risks associated with fire is important for protecting assets. A fire insurance policy provides financial security by covering damages caused by fire and related perils. Let's break it down in simple terms. What are the 12 perils of fire?

The fire insurance policy protects against several perils. Here's a list of the 12 perils commonly covered:

Fire

This is the most basic peril covered. Fire incidents can cause devastating losses, leading to structural damage, loss of valuables and in severe cases, complete destruction of properties. It is crucial to have adequate property coverage to recover financially from such mishaps.

Lightning

A lightning strike can cause fires, structural damage and power surges that affect electrical appliances. Your fire insurance policy typically covers these damages. Lightning can also lead to secondary hazards such as electrocution, power failures and even explosion risks if flammable substances are present.

Proper grounding and surge protection measures can minimise risks, but unforeseen incidents can still occur, making it vital to have property coverage to manage financial losses.

Explosion and implosion

Explosions from gas cylinders, boilers or pressure cookers can result in significant losses. Implosions, which occur when pressure collapses inward, are also covered. This peril is particularly relevant for industrial settings where heavy machinery and pressure-based equipment are used.

Aircraft damage

Damage caused by an aircraft crash or falling debris from aircraft is covered. This includes impact damage and fire resulting from such accidents. Although rare, incidents of aircraft parts detaching mid-flight and falling onto properties have occurred.

If an aircraft crashes into a residential or commercial property, the destruction can be extensive. This is where property coverage proves invaluable, covering not just the fire damage but also any collateral destruction.

Riot, strike and malicious damage

Violence, strikes or acts of vandalism that cause property damage are covered. If a mob sets fire to a shop during a riot, the fire insurance policy provides compensation. Businesses, especially retail outlets and warehouses, are more susceptible to such risks.

Even residential properties may suffer vandalism during large-scale protests or unrest, highlighting the importance of having property coverage.

Storm, cyclone, typhoon and flood

Natural disasters like storms, typhoons and floods can lead to fire hazards. If lightning or storm damage results in a fire, your insurance policy covers the loss. With changing climate patterns, India is experiencing more intense storms and cyclones. A fire insurance policy with comprehensive property coverage ensures homeowners and businesses can recover from such catastrophes.

Impact damage

Physical impact from falling trees, vehicles or other objects can damage property. The fire insurance policy covers these losses, as long as they are accidental. Vehicle crashes into buildings, tree collapses due to strong winds or construction-related accidents can all cause significant damage.

Subsidence and landslide

Earth movements like landslides or ground subsidence can cause structural damage. Hilly regions and areas with unstable soil structures are at a higher risk of subsidence. Construction projects in such regions should always ensure adequate property coverage to mitigate risks.

Burst or overflowing water tanks and pipes

A burst pipe or water tank overflow can damage electrical systems, leading to short circuits and fire hazards. Insurance provides financial assistance for repairs. Water damage alone is costly, but when it leads to fire, the destruction can be even more severe.

Regular maintenance of plumbing systems is advisable, but unexpected failures can still occur. Having a fire insurance policy ensures you're financially covered.

Leakage from automatic sprinkler installations

Sprinkler malfunctions can lead to water damage. If an automatic sprinkler system fails and contributes to a fire, the fire insurance policy covers the resulting losses.

While sprinklers are designed to mitigate fire hazards, faulty installations or pressure failures can lead to unintended leaks, damaging electrical equipment and increasing fire risks.

Bush fire

Fires spreading from nearby forests or open fields can affect residential and commercial properties. Fire insurance ensures compensation for damage due to bushfires.

Climate change has increased the occurrence of wildfires, making this peril particularly relevant for properties near grasslands, dry forests or agricultural areas.

Theft or burglary following a fire

If a property is left vulnerable after a fire and burglary occurs, it is covered under the fire insurance policy. However, standalone theft without a fire incident is not included.

A fire-damaged property is more susceptible to looting. Businesses and homeowners should ensure they have comprehensive property coverage to recover from such events.

Why property coverage matters

Fire-related damages can result in substantial financial loss. A robust property coverage plan helps safeguard:

. Homes and personal belongings

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