BROCHURE

PROPERTY INSURANCE

Let us be prepared for tomorrow; Accidents are unpredictable. One should have fire insurance for the property, whether business or home, to mitigate the financial losses caused due to fire accident.

A property is always a precious possession to be proud of. We must take care of the things we love the most. Hence Insurance can help to mitigate the financial loss which may occur due to some unforeseen accidents.
Properties such as houses, apartments, villas, independent buildings, office spaces, and shops can go in losses due to many incidents like fire, flood etc. We usually do not realise that such an outbreak can affect the business's continuity and can cause severe implications to the property and households if occurred at home. As per an ADSI report, residential buildings are more prone to fire outbreaks. Not just property, but the damages caused to the interior is unbearable.
Everything from natural calamities (flood, storm, landslide, rockslide, earthquake), fire and human-made incidents (burglaries, explosions) are covered under fire insurance, depending on the coverages you have opted for. Insurance can also cover losses caused due to other unforeseen circumstances such as loss of profits and machinery breakdown.

Choosing the right Insurance for a Property


Standard Fire and Special Perils (SFSP) Insurance

Tailored Insurance covers material damage caused to property and interior by providing complete coverage to the insured. Fire insurance policy's subject matter can be any property with financial value, such as buildings (including plinth and foundation), plants and types of machinery, stocks, furniture, fixtures and fittings, other contents, stocks etc. Any person or organisation with an insurable interest in the subject matter, i.e., a legal and financial relationship, can take the Insurance. The Sum insured in Standard Fire & Special Perils policies can be on the market value basis or reinstatement value basis. Insurance for stocks cannot be on a reinstatement basis.

Perils Covered under Fire and Special Perils Insurance:
  • Fire
  • Lightning
  • Explosion/Implosion
  • Aircraft damage
  • Riot Strike
  • Terrorism
  • Storm Flood inundation
  • Impact damage
  • Subsidence landslide
  • Bursting or overflowing of tanks
  • Bush fire
Types of Fire and Special Perils Insurance Policy
  • Valued policies: Valued policies can be issued only for the properties wherein the market value is a challenge to be determined.
  • Floater policies: These policies are issued to cover the stocks under different locations, at a single sum insured. The sites which need to be insured should be specified by the insured.
  • Declaration policies: Declaration policies can be issued when there are recurrent fluctuations in the stock values. These policies can be issued only for stocks.
  • Floater Declaration Policies: These are the combinations of floater and declaration policies.
Abhivridhi Tip
Always consider Add-on covers with Fire and special perils policy. Add-ons are available for
  • Terrorism
  • Removal of Debris
  • Architects Surveyors Consulting Engineers fees
  • Earthquake (Fire and Shock only)
  • Spontaneous combustion
  • Start-up expenses
  • Spoilage Material Damage Cover
  • Leakage and Contamination cover

Burglary & Theft Insurance

Burglary Insurance protects against loss of or damage to the insured property due to burglary and housebreaking. The Insurance pays actual loss/damage to your insured property caused by burglary/housebreaking subject to Sum Insured's limit.


  • Loss of or damage to the property Insured caused by theft following actual forcible and violent entry into or exit from the premises.
  • Any damage to the premises described in the schedule for which the Insured is responsible following upon or occasioned by an actual forcible and violent entry into or exit from the premises or any attempt thereat.

    • The Sum Insured should be on current market prices for stocks. For other items such as furniture, fixture, equipment, etc., it should be either on Market Value (i.e., new replacement cost less depreciation) or a Reinstatement Value basis.

    Abhivridhi Tip

    Cover Riot, Strike, Malicious Damage and Theft as an extension to a Burglary Insurance.


Fire Loss of Profits (FLOP) Insurance

Business interruption insurance protects businesses against losses that arise due to a business's shutdown due to damage caused by a covered event, such as fire, hurricane, or other natural disasters. The net effect or goal of business interruption coverage is to make the business whole should a covered event occur. The business's financial statements should report the same financial results as if the covered event had not occurred.

A Fire Loss of Profit Insurance covers losses arising from interruption of or interference with trading or business activity following a fire or any other peril insured under the Fire Insurance. Provided that there shall be in force Fire insurance covering the property at the premises and liability admitted under the Fire insurance. The actual interruption period starting from the date of loss/ damage till the regular date of restored operation is called the interruption period.

Scope of cover
Coverage under this Insurance includes.
  • Loss of Net Trading Profit.
  • Standing Charges
  • Loss in Respect of Wages other than those covered by the Standing Charges.
  • Increased Cost of Working and Auditor's Fees.
Abhivridhi Tip
Important provisions in Loss of profit Insurance.
  • Material Damage Provision.
  • Departmental Clause: cost accounting.
  • Return of Premium Clause: 50%.
  • Accumulated Stocks Clause: shortage postponed.
  • Alternative Basis Clause: in Turnover basis policy.
  • Auditor's fee clause.
  • New Business Clause.
  • Insured's property stored at other locations.
  • Supplier and customers premises extension.
  • Loss due to an accidental breakdown of public electricity/gas/water supply due to M.D .

Industrial All Risk (IAR) Insurance

Industrial All Risk Insurance is an exclusion-based bundle policy without any named perils. In this policy, specific exclusions incorporated concerning the operating perils and properties. That means whatever not excluded is covered under the policy. The IAR Insurance also protects your balance sheet from any adverse consequence arising out of Business Interruptions interruption.
Sum insured under IAR policy is considered based on Reinstatement value. The Insurance policy is designed in two sections.

Section I (Material Damage):
  • Fire & Special Perils,
  • Burglary,
  • Earthquake,
  • Machinery Breakdown, Boiler Explosion,
  • Breakdown of Electronic Equipment
Section II (Business Interruption)
  • Loss of Profit due to Machinery loss of profit (optional)
  • Loss of Profit other than Machinery loss of profit
Features of Industrial All Risk Insurance.
  • Underinsurance up to 15% waived off.
  • A reduced flat rate is applicable for Machinery breakdown cover.
  • Transit risk within the premises is covered.
  • Burglary & other accidental damage covers.
  • Breakdown of Machinery, Electronic Equipment & explosion risk of Boiler are covered.
Abhivridhi Tip:
Under the Business Interruption section, Customer and Supplier Extension Add-ons are available.


As part of property insurance, our team understands your business or property's nature and helps you with a plethora of options available with various insurance companies in the market. We customise the policy as per your business requirements and help you with a tailor-made insurance solution.
*varies from an insurance company.