The 60-second version
Fire policy covers building, stock, and machinery against fire and named perils — mandatory for bank loan and mall lease. I insure replacement value, add STFI rider, and keep extinguisher certificate.
Under-insurance triggers average clause on partial loss
Returning founders leasing shop or office need fire policy — landlord and bank often demand copy before key handover.
Sum insured equals rebuilding cost + stock at peak season — not just fit-out invoice.
Add STFI (storm, flood, earthquake) rider for coastal and hill cities.
Burglary: burglary rider guide — separate from fire.
Fire policy building blocks
| Section | Covers | Typical SI basis |
|---|---|---|
| Building | Structure | Rebuilding cost |
| Contents | Fit-out | Invoice value |
| Stock | Inventory | Peak season value |
| Machinery | Plant | Replacement value |
| STFI rider | Flood/quake | Add-on premium |
Fire policy sequence
Asset schedule
Building + contents + stock list.
Declare SI
Replacement not depreciated book.
Add STFI
If flood/quake zone.
Submit to landlord
Before lease commencement.
Claim protocol
Fire brigade report + photos.
Claim flow
Fire policy kit
- Asset list.
- Lease agreement.
- Policy schedule.
- Extinguisher cert.
- Fire brigade contact.
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Terrorism
Mall leases may require terrorism rider — verify lease clause.
Quick visual
Animated decision map
Community signal
What to watch in real discussions
Search community threads for the exact phrase, then treat repeated complaints as risk signals rather than official advice.
Open nofollow community search ->Interactive checkpoint
Turn this guide into a decision file
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Home office?
Home policy excludes commercial stock — separate shop policy.
Co-working?
Landlord master policy may cover — get certificate naming you.
GST on premium?
18% GST — ITC if business asset.
Bank hypothecation?
Bank clause endorsement on policy schedule.
Vacant period?
Vacancy clause reduces cover — notify insurer.
With MBD?
Machinery breakdown separate rider — see MBD guide.
The plan is only as good as the sequence.
Tax, banking, schools, shipping — they all have dependencies. A wrong order costs months and lakhs. Get it right.