What is Fire and Special Perils?
Fire and Special Perils: Fire and Special Perils is a type of property insurance that provides coverage against a wide range of risks beyond just fire damage. Here's everything you need to know about fire and special perils insurance:.
1. Coverage: Fire and special perils insurance typically covers damage or loss to property caused by fire, lightning, explosion, earthquake, storm, flood, impact damage (e.g., from vehicles or falling trees), riots, strikes, malicious damage, burst pipes, leakage from automatic sprinkler installations, and other similar perils.
2. Property Covered: This insurance typically covers both residential and commercial property, including buildings, contents, machinery, equipment, inventory, and other assets. It can also extend to cover improvements, renovations, and fixtures within the insured property.
3. Fire Damage: Fire is one of the primary perils covered under this insurance. It protects against damage caused by fire, whether it originates within the property or spreads from neighboring property.
4. Special Perils: In addition to fire, special perils insurance extends coverage to a variety of other risks. These can include natural disasters such as earthquakes, floods, storms, and volcanic eruptions, as well as man-made perils like riots, strikes, civil commotion, vandalism, burglary, theft, and malicious damage.
5. Business Interruption: Some fire and special perils insurance policies may include coverage for business interruption. This means that if the insured property suffers damage or is rendered unusable due to an insured peril, the policy will compensate the insured for lost income and ongoing expenses during the period of interruption.
