Fire Insurance – What Is Covered in a Standard Fire Insurance Policy

Uncertainty is the nature of the world we live in. Natural disasters, flash floods, hurricanes, and fires are among the several hazards that can happen anytime. Fire is a significant threat to businesses. Therefore, without a fire insurance policy in place, the monies you’ll be incurring for repairs could leave you bankrupt and out of business in quick succession.

The fire insurance policy offers cover against an unexpected loss or damage to property due to fire or other risks covered under the policy agreement.

What is Standard Fire Insurance Policy

Standard Fire Insurance Policy is a traditional cover that offers cover against fire and allied perils listed in the policy. Basically, the policy can cover the building (including plinth and foundation), plant and machinery, stocks, furniture, fixtures and fittings, and other contents.

What Does It Cover?

Standard fire policy provides cover for damage to property caused by fire, lightning, or explosion: Where the explosion is brought about by Gas or boiler not used for an industrial purpose (i.e.) explosion of Gas or boilers used for domestic purpose only is covered.

Upon payment of additional premium, you can add extra perils to the policy, including:

  • Storm,
  • Tempest or flood
  • In addition, subsidence
  • Burst pipes
  • Earthquake
  • Also, aircraft and articles dropped from them.
  • Riot
  • Civil commotion
  • Malicious damage
  • Lastly, impact by vehicles and explosion

What are The Main Parts of A Standard Fire Policy?

The Standard Fire Policy has four main sections in its contract, and they include the following:

  1. Declaration- this includes the description and location of the properties insured, name of insured, as well as premium payable
  2. Contractual agreements and guidelines of the policy which includes the premium amount, responsibilities of the insured, steps the insured must take in the event of loss, and resultant claims.
  3. Policy conditions – this describes what suspends or restricts the policy coverage, such as an increase in risk factors with the knowledge of the insured.
  4. Policy exclusions – the policy doesn’t cover these risks.

Types of Fire Insurance Issued By Insurance Companies in Nigeria

Basically, Nigerian Insurance companies provide fifteen different classes of fire insurance policies to protect individuals and businesses from losses caused by fire. There are various forms of policy contracts for different types of situations.

For meeting the various needs of individuals and businesses, the types of fire policies include:

  1. Valued Policy.
  2. Consequential Loss Policy.
  3. Specific Policy.
  4. In addition, Excess Policy.
  5. Average Policy.
  6. Floating Policy.
  7. Also, adjustable Policy.
  8. Declaration of Policy.
  9. Maximum Value of Discount Policy.
  10. Reinstatement Policy.
  11. Comprehensive Policy.
  12. Valuable Policy.
  13. Escalation Policies.
  14. Add on Covers Policy.
  15. Lastly, sprinkler Leakage Policy.

Which Risks Are Not Covered Under The Standard Fire Policy?

However, there are some risks that are not part of the policy coverage on the insurance policy. These include:

  1. Any form of excesses as specified in the policy
  2. In addition, the loss, destruction, or partial damage caused by war, invasion, or the act of foreign enemy hostilities
  3. Nuclear risks
  4. Loss or damage from Pollution or contamination
  5. Lastly, loss of earnings, loss by delay, loss of market, or other consequential or indirect loss or damage of any kind or description whatsoever.


You must understand the policy conditions before opting for a standard fire insurance policy. This will guide your actions while the insurance policy is in force as well as ensure a seamless claim process experience in the event of a claim.