Fire Insurance
Fire insurance is a property policy that pays to repair or rebuild your building, plant, machinery and stock if they are damaged by fire and a list of allied perils like lightning, explosion, storm, flood and earthquake. In India, MSMEs and homes are usually covered under IRDAI's standard products (Bharat Griha Raksha for homes, and Bharat Sookshma Udyam or Bharat Laghu Udyam for small businesses), so the cover and wording are largely uniform across insurers. Through Assurmate you compare these standard policies across 75+ insurance partners and get full claims support, at no extra cost to you.
What it is
Fire insurance is a "material damage" property policy. You declare the value of what you want to protect, the building, fixtures, plant and machinery, furniture and stock, and the insurer pays you for loss or damage caused by an insured peril. Despite the name, it covers far more than fire alone: lightning, explosion and implosion, aircraft damage, riot and strike, malicious damage, storm, cyclone, flood and inundation, landslide and rockslide, bursting of water tanks and pipes, and (importantly in India) earthquake and terrorism on most standard wordings.
For MSMEs, IRDAI has standardised this cover. Bharat Sookshma Udyam Suraksha is for businesses where the total value at risk is up to 5 crore, and Bharat Laghu Udyam Suraksha covers values above 5 crore and up to 50 crore. For homes, Bharat Griha Raksha covers the building and contents. Because these are regulator-mandated products, the coverage, perils and key clauses are the same whichever insurer you buy from, so the sensible thing to compare is service, claim record and price. Exact sums insured, add-ons and pricing still vary by insurer and policy wording.
Who needs it
Any business or individual that owns or rents physical property with real financial value needs fire insurance. That includes factory and warehouse owners, shopkeepers and traders, offices, clinics, restaurants and hotels, and MSMEs protecting buildings, machinery and stock. It is also frequently a contractual requirement: banks and NBFCs almost always insist on fire cover (often a "bank loss payee" clause) before sanctioning a loan against property, plant or inventory. Homeowners and even tenants benefit too, as a single fire, short circuit or flood event can wipe out years of savings. If you could not comfortably afford to rebuild your premises and replace your stock out of pocket after a major fire or natural calamity, this is the cover that stands between an accident and financial ruin.
What's covered
- Fire, lightning, explosion and implosion
- Riot, strike, malicious damage and acts of terrorism (per standard wording)
- Storm, cyclone, typhoon, tempest, hurricane and flood/inundation
- Earthquake (shock and fire) on standard MSME and home products
- Subsidence, landslide and rockslide
- Bursting or overflowing of water tanks, apparatus and pipes
- Damage from impact by vehicles or aircraft and articles dropped from them
- Building, plant and machinery, furniture, fixtures and stock as declared
Typically not covered
- Wear and tear, gradual deterioration, rust, mildew and inherent defects
- Loss or damage caused by the insured's own wilful act or gross negligence
- War, invasion, nuclear radiation and related perils
- Electrical/mechanical breakdown of the specific machine that failed (unless add-on taken)
- Theft during or after a fire and consequential/indirect losses unless specifically covered
- Money, deeds, bullion, jewellery, manuscripts and unset precious stones unless declared
- Spontaneous combustion or property undergoing a heating/drying process
- Loss while the property is unoccupied beyond the permitted period or used for undeclared purposes
Why buy it through Assurmate
Standard, regulator-backed cover
IRDAI's Bharat Sookshma Udyam, Bharat Laghu Udyam and Bharat Griha Raksha products use the same simplified wording across all insurers, so you get fair, transparent terms without hidden traps.
Wide peril protection in one policy
A single policy covers fire, natural calamities like flood and earthquake, and man-made risks like riots and terrorism, so you are not exposed to one big gap.
Compare 75+ insurance partners in one place
Assurmate puts standard fire policies from leading insurers side by side so you choose on claim record, service and price, not marketing.
Free, conflict-free advice
As a trusted insurance advisory we represent you, not any insurer, and our guidance costs you nothing extra over the insurer's own premium.
Right sum insured, fewer claim shocks
We help you value building, machinery and stock correctly so you avoid under-insurance and the average clause cutting your claim at the worst time.
Full claims support when it matters
We help you intimate the claim, prepare documents, coordinate with the surveyor and follow up to settlement, so you are not facing the insurer alone.
Optional add-ons
- Declaration policy for fluctuating stock. Lets you insure stock on a declaration basis and pay premium on the average value held, ideal for traders and warehouses with seasonal inventory swings.
- Fire Loss of Profit / Business Interruption. Covers loss of gross profit, standing charges and increased cost of working while you rebuild after an insured fire, so cash flow survives the downtime.
- Reinstatement value cover. Settles claims on the cost of rebuilding or replacing with new property instead of depreciated value, available subject to insurer terms.
- Burglary and theft cover. Add-on or companion policy that protects stock and contents against break-in and theft, which the base fire policy excludes.
- Machinery breakdown / electronic equipment. Covers sudden electrical or mechanical failure of plant, machinery and electronic equipment that the fire policy alone does not address.
- Escalation clause. Automatically increases the sum insured by a chosen percentage through the policy year to keep pace with rising rebuilding and replacement costs.
How to buy through us
- 1
Share your property details
Tell us about your premises, building, plant and machinery, and the value of stock, plus any bank loan or loss-payee requirement. Takes only a few minutes.
- 2
Compare standard policies
We put suitable Bharat Sookshma, Bharat Laghu Udyam or Bharat Griha Raksha policies from 75+ insurance partners side by side with clear pricing and terms.
- 3
Pick the right cover and sum insured
We help you fix the correct sum insured to avoid under-insurance, choose add-ons like business interruption, and finalise the policy that fits your risk and budget.
- 4
Buy and stay supported
Complete payment, receive your policy, and rely on Assurmate for renewals and end-to-end claims support whenever you need it.
Fire Insurance questions
The things people ask us most about this cover.
No. Despite the name, a standard fire policy in India covers a wide set of allied perils including lightning, explosion, riot and strike, malicious damage, storm, cyclone, flood and inundation, landslide, and on most standard products earthquake and terrorism too. Fire is just the headline peril, the cover is much broader.
Both are IRDAI's standard fire and allied perils products for businesses. Bharat Sookshma Udyam Suraksha is for businesses with total value at risk up to 5 crore, while Bharat Laghu Udyam Suraksha covers values above 5 crore and up to 50 crore. The covered perils are similar, the difference is the size of the business they are designed for.
Yes, if you declare it. You can insure stock as part of the policy, and traders or warehouses with fluctuating inventory can use a declaration basis so premium reflects the average value held. Note the base fire policy excludes theft, so add a burglary cover if that risk matters to you.
Under-insurance is when you insure your property for less than its actual rebuilding or replacement value. If you do, the average clause lets the insurer reduce your claim in the same proportion, so even a partial loss is only partly paid. We help you value the building, machinery and stock correctly so you are not caught out at claim time. Exact application varies by insurer and policy wording.
Yes. Lenders commonly require fire cover with a bank loss-payee or hypothecation clause before sanctioning a loan against property, plant or stock. We arrange a compliant policy with the correct sum insured and the bank named as required, and share the documents your lender needs.
No. You pay the same premium as going to the insurer directly, since these are standardised products and our commission is paid by the insurer, not by you. You get comparison across 75+ insurance partners, help fixing the right sum insured, and full claims support at no extra cost.
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