Fire and Allied Perils Insurance

What is Fire and Allied Perils Insurance in the UAE?

Fire and allied perils insurance coverage covers losses and damages caused by natural calamities and man-made disasters. It offers protection against several calamities, including fire, storm, earthquake, riots, malicious damage, lightning, aircraft damage, explosion, and more.

The coverage extends to building, furniture & fittings, business stocks, plant & machinery, office equipment, and more. You can customise plans as required, and get the maximum coverage from the insurance company. Typically, this policy provides coverage for one year.

Who Needs Fire and Allied Perils Insurance Coverage? 

Fire & Allied Perils Insurance is suitable for anyone with a financial interest in a property. This includes:

• Property owners who want to protect their commercial buildings from unexpected disasters
• Businesses that manage or hold property on behalf of others, such as in trust or on commission
• Financial institutions, including banks or lenders that have a stake in mortgaged or financed properties

In short, if your income, assets, or investments depend on the safety of a property, fire and allied perils insurance provides essential protection against unforeseen risks.

Why is Fire and Allied Perils Insurance Important?

A fire and allied perils insurance coverage provides valuable protection for both businesses and property owners. For factories and office buildings, it covers damage to furniture, fixtures, and fittings caused by fire or other insured risks.

It also takes care of the expenses needed to repair equipment or devices that may be damaged due to several other perils, helping businesses recover quickly without bearing heavy financial losses. Another advantage is that the premium rates of the coverages are generally affordable, making it a cost-effective way to secure your property against major risks.

Most importantly, this insurance offers comprehensive coverage against natural disasters such as landslides, cyclones, floods, earthquakes, and more—giving you peace of mind that your assets are well-protected against unexpected events.

What are Inclusions and Exclusions Under Fire and Allied Perils Insurance Policy

It’s crucial to understand what is covered and what’s not in a fire and allied perils insurance policy. Here, we have listed the common inclusions and exclusions for your reference:

✍️ Always review your policy document carefully to understand the inclusions and exclusions. Coverage may vary from one insurer to another, so the coverage available to you might differ from the details mentioned above. 

Add-Ons: Fire and Allied Perils Insurance Policy

To get extended protection, you can choose the following add-ons:

• Loss of rent 
• Accidental damage to the signboard or plate glass 
• Removal of debris 
• Cash in safe, and more

Why Choose Policybazaar.ae for the Right Fire and Allied Perils Insurance in UAE?

Purchasing fire and allied perils insurance is significant to safeguard your investments (property and projects) from various incidents. When you are buying the coverage with Policybazaar.ae, you are accessing more than a policy:

Quotes from the Top Providers

You will only get the best, as we are associated with the top providers in the UAE.

Easy Policy Purchase

No complexities, no headaches, no hassles – just get the coverage in a few clicks.

Trusted by Millions of People

Rated among the best, all because of the trust of millions of UAE residents.

Seamless Claim Assistance

We offer dedicated support throughout the claim process to make it smooth.

Customised Insurance Plans

Get what you want as per your property, requirements, and budget.

No Surprises, Only Transparency

We are recognised for reliability, honesty, and transparency, not for hidden surprises.

Factors Determining the Cost of Fire & Allied Perils Insurance

The premium of fire and allied perils insurance is influenced by many factors, and some of them are mentioned below:

Property Type

The nature of the property, whether it’s a factory, office, or warehouse, affects the premium. Commercial and industrial properties usually carry higher risks compared to residential ones, leading to higher insurance costs.

Location of Property

Properties located in areas prone to natural disasters like floods, cyclones, or earthquakes generally have higher premiums.

Sum Insured (Coverage Amount)

The cost of your insurance depends on how much your property and assets are worth—the higher the value, the higher the premium. It also matters whether you insure them for their depreciated value or for the cost of replacing them as new (replacement cost).

Nature of Business Operations

If the property is used for high-risk activities, such as manufacturing or storing flammable materials, the premium will be higher. Safer operations, like offices, usually attract lower insurance costs.

Add-Ons

If you choose extended protection in the form of add-ons on your basic fire and allied perils insurance plan, your premium will rise. Broader protection means a higher premium, and the cost may vary for each add-on.

How to Buy the Fire and Allied Perils Insurance in the UAE? 

If you want to purchase fire and allied perils insurance online in the UAE, Policybazaar.ae is the ideal platform. Simply follow the easy steps:

• Go to the homepage and click ‘Business Insurance’
• Select ‘Fired & Perils’ insurance type 
• Enter the details in the form 
• Submit the request and proceed 
• You will get a call from us to guide you further

Fire and Allied Perils Insurance Claim Process 

The claim settlement process of this type of insurance involves various steps —

Notify the Insurer 

It’s crucial to inform your insurer immediately after the incident occurs. Provide them with all the necessary details, such as policy number, estimation of loss/damage, and more. 

Take Preventive Measures 

Once you inform the insurer, take preventive measures to control further damage. For example, using fire extinguishers to control fire spread, shutting off electricity or water supply, or securing the premises.

Documents Submission 

Now, you need to file a claim request by completing the form with the detailed information of the event, such as date, type of damage, and more. Along with this, you need to submit some required documents, such as evidence of loss/damage, police copy or report, photographs, videos, and more. 

Claim Assessment & Evaluation 

The insurer appoints an independent surveyor or loss adjuster once your claim request is accepted by them. They will visit the site where the incident happened, examine all the loss/damage, collect evidence, and prepare a detailed report to submit to the insurance company. During this, you must cooperate with the surveyor by providing them with all the relevant documents and answering all their questions.  

Claim Settlement 

After evaluating the report, the Fire and Allied Insurance Company will make the compensation to you. Here, it’s important to note that both the insurance company and the policyholder should agree on the settlement amount.

What to Consider While Buying Fire and Allied Perils Insurance Policy?

Here, we have outlined the key things to keep in mind while purchasing a fire and allied perils insurance policy:

• Make sure to buy this policy from a reliable insurance provider.
• Choose a coverage amount wisely to secure your building, machinery, and other accessories.
• Look for the types of risks covered in your chosen plan, such as flood, earthquake, theft, and more.
• Understand what is not covered under your chosen policy, as it may lead to disputes or disagreements at the time of claim.
• Check the documentation and claim settlement process of the insurer.
• It’s important to choose the essential add-ons for comprehensive protection.

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