All You Should Know About Standard Fire & Special Perils Policy

Posted on: Jan 11, 2022 | 3 mins | Written by: HDFC ERGO Team

All You Should Know About Standard Fire & Special Perils Policy

In the real world, nothing is guaranteed. Fire, explosions, floods, and other calamities may strike at any moment, leaving you devastated. One of the most serious threats to the company is fire. If you don't have fire insurance coverage, you'll have to cover the costs of rebuilding and repairs yourself. Massive charges like this might put your company's activities on hold. A sufficient fire and special dangers insurance coverage may assist you in surviving a significant financial loss caused by fire and other linked risks covered by the policy.

What is the Standard Fire & Special Perils Policy?

Standard fire and special perils (SFSP) insurance is a conventional insurance coverage that protects your property and its contents against damages or losses caused by fire and other hazards. It not only protects your home, but also extends coverage to surrounding buildings and personal belongings. Fire insurance plans are often renewed on a yearly basis. Many insurers, however, are now offering long-term policies with a three-year tenure to cover 'dwellings.'

What is included in the policy?

The insurance covers a variety of assets, including:

● Structures plants and machines

● Instruments and related items

● Tools

● Fittings and fixtures

● Electrical installations in furniture

● Specific items that are mentioned

The coverage is comprehensive and covers a broad variety of risks. The following is a list of the perils that have been included are:

● Fire

● Lightening

● Damage by aircraft

● Explosion

● Impact damage, such as damage inflicted by a road vehicle, rail, or a third-party animal

● Natural catastrophes

● Riots, strikes, intentional damages, and terrorism

● Landslide

● Water tanks and machinery have ruptured, flooding the area

● Leakage caused by the installation of automated sprinklers

● Operation to test missiles

● Bushfire

Additional coverage may be available from insurers for a fee. The following add-ons are available:

● Debris cleanup

● Fees charged by surveyors, architects, and consulting engineers

● A forest fire has broken out

● Spontaneous combustion

● Stocks of cold storage deteriorate

● Coverage for spoilage material damage

● Contamination and leakage protection

● Start-up costs are covered

● Coverage for rent loss

● Coverage for alternative lodging

What isn't included in the policy?

Despite the fact that the insurance covers a broad variety of risks, some are excluded from the list. The following are some examples of general exclusions:

● Nuclear dangers

● Conflict, mutiny, invasion, civil war, and other war-related dangers

● Contamination and pollution

● Stocks in cold storage

● Electricity outages

● Theft and break-ins

● Consequential losses of any kind

Who is eligible to purchase the policy?

● The building's owners, as well as the contents within the structure, such as furniture and other household items

● Hospitals, clinics, hotels, diagnostics, accommodations, and other service providers

● Shopkeepers

● Entities that produce goods

● Institutions of higher learning and research

● Institutions of finance

● Mortgagees and mortgagors

● Transporters

● Stock market traders

● Trustees and charitable trusts

● Keepers of the godown

Wrapping Up

Standard fire and special perils insurance policies have been tailored to meet your specific needs. Make sure to evaluate your insurance at least once a year to see whether more coverage is needed. It's just as bad to be underinsured as it is to be uninsured. To safeguard your valuable items, read the policy thoroughly and carefully choose the coverage maximum.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

Standard Fire and Special Perils Insurance

Perils Covered By Home Insurance Policies

Special add-ons that make home insurance offer better protection than standard policies