Fire and Allied Perils

A standard Fire Policy provides cover against loss of or damage to Insured property as a result of fire, lightning and domestic explosion.

Fire Insurance is mainly an Indemnity Policy and the insured’s loss is measured by the cost of restoring the damaged property or replacing it with property similar in condition to that at the time of the loss. The items commonly insured under fire include:


  • Building - (If building is to be insured) - The current cost of reconstruction of the building to the original form less deduction justified for betterment.
  • Plant & Machinery - The cost of replacement with a new item less deduction for depreciation due to wear and tear.
  • Stock In Trade 
  • Finished goods : the cost of raw materials plus production cost
  • Other items provided they are listed (this are items that are normally covered under the Burglary policy

The basic policy can be extended to cover the following perils among others: 

  • Storm Tempest
  • Flood Damage
  • Explosion
  • Impact Damage
  • Sprinkler Leakage
  • Aircraft Damage
  • Damage by Falling Trees or Branches and Objects Therefrom
  • Bursting or Overflowing of Water Tanks Apparatus or Pipes
  • Riot Strike and Malicious Damage
  • Earthquake and Volcanic Eruption

Requirements for Quotation:

  1. Location of Building
  2. Nature of construction of the building
  3. Nature of goods stored in the building i.e. normal goods or highly explosive goods. Explosive goods are normally excluded or rated highly
  4. A list or value of items to be covered under the policy
  5. A survey may be done to examine the risk reduction measures undertaken by the insured