What Is Covered Under Fire Insurance Policy?

Natural disasters can happen at any time, to any one and at any place. We live in a world that is full of uncertainties. The next second is pregnant, no one knows what it will give birth to. Hurricanes, earthquakes, floods, fires are among the biggest natural disasters that’s bound to happen to any one.

Knowing fully well that these natural disasters are threat to our lives and businesses and still, you give deaf ear to grabbing an insurance coverage it means you are playing with your own life.

Fire insurance policy offers coverage against unexpected fire outbreaks. The policy covers damages done to your property and other risks as contained in the policy agreement.

In Nigeria, there’s a Standard Fire Insurance Policy that covers an individual or company against damages done due to fire outbreak. The insurance company is expected to provide all that is contained in the standard insurance policy agreement if there’s a fire outbreak. Traditionally, fire standard policy covers the building , plant and machinery, stocks, furniture, and other other valuables inside the building that was got by fire

3 categories of perils under fire insurance

The standard fire insurance policy provides cover for damage to property caused by:

  • Fire
  • Lightning and
  • Explosion

If you want additional perils to be covered under your fire policy, then you are expected to pay for additional premium. Other perils that you might consider to cover under your fire policy are:

  • Storm
  • Tempest or flood
  • Subsidence
  • Burst pipes
  • Earthquake
  • Aircraft and articles dropped from them.
  • Riot
  • Civil commotion
  • Malicious damage
  • Impact by vehicles and explosion

How does fire insurance policy form look like?

The standard fire insurance policy form is of four sections. You are expected to fill these section accurately because it part of the contract agreement between you and the insurance policy.

1. Declaration section

This includes the:

  • Description and location of the properties insured.
  • Name of insured and
  • Premium payable

2. Contractual agreements

This contains the guidelines of the policy which includes the:

  • Premium amount
  • Responsibilities of the insured
  • Steps the policyholder must take in the event of loss or damages and claims.

3. Policy conditions

This section is very important because it describes the conditions that will suspends or restricts the policy coverage.

4. Policy exclusions

This section states categorically all the risks that are not covered under the policy.

There are some risks which are excluded from the policy coverage on the insurance policy, they include:

  • Loss, destruction or partial damage caused by war, invasion, or the act of external enemies.
  • Nuclear risks
  • Loss or damage from Pollution or contamination
  • Indirect loss or damage of any kind

Types of Fire Insurance Policy in Nigeria

Insurance companies in Nigeria provides up to 15 different Insurance policies to protect individuals and companies from damages that may be cased by fire. Below are some of the policies.

  • Valued Policy.
  • Consequential Loss Policy.
  • Specific Policy.
  • Excess Policy.
  • Average Policy.
  • Floating Policy.
  • Adjustable Policy.
  • Declaration of Policy.
  • Maximum Value of Discount Policy.
  • Reinstatement Policy.
  • Comprehensive Policy.
  • Valuable Policy.
  • Escalation Policies.
  • Add on Covers Policy.
  • Sprinkler Leakage Policy.


I hope this article will guide your actions while choosing any insurance policy relating to fire. It is advisable you understand the risks associated to any policy before you sign up.

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