Commercial Property Insurance

Commercial buildings refer to buildings such as school buildings, shops, malls, office blocks, hospitals, super markets, churches, mosques etc.
This type of cover is commonly referred to as fire insurance. It covers the damage to the building and stock caused by fire and related perils such as floods, storms, earthquake escape of water as defined in the
terms and conditions of the policy. The policy may be extended to cover burglary.

What is covered under the standard Fire policy?

  • Damage caused by fire. The policy covers damage caused by fire. It does not cover natural heating or spontaneous combustion and also doesn’t cover the burning of the property if ordered by any public authority.
  • Lightning. Loss or damage resulting from lightning
  • Limited Explosion. Explosion and implosion is covered but the loss or destruction to the boilers due to their own explosion or implosion is not covered. Domestic boilers are exception and the policy doesn’t cover the damages caused by the centrifugal forces. If the boilers are to be covered they should be covered under boiler explosion policy separately.
  • Damages due to aircraft. Damage and loss due to aircrafts, aerial devices, space devices and the articles dropped or coming fromthese devices are covered. But the loss due to the pressure waves is not covered.
  • Riots, strikes and malicious damages
  • Physical damage to the property directly due to violent activity due to riots, strikes or malicious damage is covered.
  • Terrorism cover. Terrorism is generally excluded but can be obtained by paying an additional premium along with the riot; strikes and malicious damage cover.
  • Natural perils cover. Storms, tempests, cyclones, hurricanes, typhoons, flood or inundation, tornado are considered to be natural perils and are covered. But earth quake, volcanic eruption and other disasters of nature are not covered under the normal policy it is to be obtained as an add on cover to minimize the losses from the earth quake.
  • Impact damage. Losses or visible physical damages to the property caused due to an impact by rail/road vehicle or animal by direct contact which is not owned by the owner/insured or occupier of the premises, employees of the
    insured while in the course of their employment/duty are covered.
  • Landslide, Rock slide or subsidence losses. Losses due to rockslide or landslide on which the property is located is covered. Whereas normal cracking, settlement or bedding down of new structures is not covered. Losses or damages due to demolition, construction, structural alterations or repair of the property or ground works and excavations are not covered.


Documents required when applying Fire policy
  • Valuation report of the subject matter
  • Certificate of lease(if subject matter is under lease)
  • Copy of ID
  • Copy of Title
  • Copy of PIN certificate


Fire claim procedure

  • Firstly the insured should take all possible steps to minimize the loss.
  • The fire brigade should be contacted.
  • Lodge a police complaint in case of a fire arising out of – rioting mob, striking workers, malicious damage by third parties or terrorist damage.
  • Inform insurer as early as possible , in no case later than 24 hours
  • Complete the claim form and forward to Banc assurance.
  • Provide the surveyor appointed by the insurer with as much relevant information as possible.
  • If the policy is on ‘reinstatement basis’, the claim is settled only after completion of repairs/ replacement of the damaged items and submission of bills for claim payment.