Fire Peril in Fire Insurance: Meaning & Key Coverage Areas
30 Oct 2025
Fire Peril - Understanding Perils covered under Fire Insurance
A Fire Peril is one of the 12 Perils in Fire Insurance policy that covers damages directly caused by Accidental Fire outbreaks in the insured property.
A claim scenario
One of our MSME customer from Delhi, reported damage of Stock due to Fire Accident which is caused due to Electrical Short Circuit. A Surveyor was deputed on the immediate next day for the preliminary inspection and on the receipt of relevant documents claim was fully settled.
Premium paid – Rs. 39,000/-
Assessed Loss – Rs. 48,79,177/-
Claim paid – Rs. 48,79,177/-
This helped the customer to continue to run the business even after this major disruption without letting the loan turning into NPA.
What is Not Covered under Fire Peril
Specific instances such as damage from fermentation, natural heating, spontaneous combustion, or heating processes, damage resulting from orders by Public Authority or any intentional damage is not covered.
Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. The information provided is generic in nature and is for informational purpose only. Please consult your financial advisor before taking any decision.
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