 It is a commercial policy covering building, offices, machinery, contents and personal belongings of the office. It mitigates the risk of loss of customers arising from fire breakout. The insured should take all possible steps to minimize the loss. Destruction or damage to the property insured by its own fermentation, natural heating or spontaneous combustion or its undergoing any heating or drying process cannot be treated as damage due to fire e.g., paints or chemicals in a factory undergoing heat treatment and consequently damaged by fire is not covered. Further, burning of property insured by order of any Public Authority is excluded from the scope of cover.
Common requirements may be:
- An original insurance policy or insurance binder.
- A mortgage clause stipulated by the bank or lending institutions naming them as mortgage must appear on the insurance documents.
- A paid receipt for the first year's premium.
- They may even want possession of the insurance documents before they set a closing date.
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