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.

💡Don’t get confused between Fire Insurance and Fire & Allied Perils Insurance!

Standard fire insurance provides you with coverage for loss/damage caused by fire only. On the other hand, fire & allied perils insurance gives you coverage for fire and other perils, indicating comprehensive protection.

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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.

Types of Fire and Allied Perils Insurance Coverage

Most of the insurance providers provide two types of coverage under fire and allied perils insurance in the UAE:

Fire Coverage

This is the core protection offered under this basic policy. It covers losses or damage caused directly by fire or lightning to your insured property. This may include building, furniture, fixtures & fittings, machinery, and other valuable items. For example, if a short circuit causes a fire that damages your office or stock, the fire insurance Dubai will help you recover the financial loss.

Fire and Allied Perils

Beyond fire, this policy extends protection to a wide range of other unexpected events, called perils. These may include natural disasters, accidental damages, and man-made risks. To understand this simply, if a flood damages your warehouse stock or a vehicle accidentally crashes into your property, the policy ensures you are financially protected.

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:

Inclusions

Fire

Lightning

Storm

Earthquake

Explosion

Aircrafts

Strike/Riot

Flood

Bursting or overflowing water apparatus/tanks

Theft/Burglary

Other accidental loss/damage

Exclusions

Wear and tear/depreciation

War/civil war and civil commotion risks

Political risks

Nuclear explosion

Sabotage

Terrorism

Pollution and contamination

✍️ 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

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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.

Frequently Asked Questions

Yes, fire insurance is different from Fire & Allied Perils Insurance. Fire insurance Dubai covers only losses or damages caused by fire, whereas fire & allied perils insurance offers wider protection, including risks such as storms, floods, theft, riots, and other unforeseen events.

Fire and allied perils insurance is a type of policy that covers the loss and damage due to several unforeseen events, like fire, storm, earthquake, riots, aircraft, strikes, and more. Overall, it gives you financial protection and peace of mind.

Fire & Allied Perils Insurance can be purchased by anyone with a financial interest in a property. This includes businesses, individual property owners, financial institutions, and even government entities that want to safeguard their assets against unforeseen risks.

Fire and allied perils insurance covers your property (building), fixtures & fittings, furniture, stocks (raw materials or manufactured products), plant equipment, machinery, and other valuable items that are insured under the plan.

No, fire and allied perils insurance coverage is not mandatory, but it’s highly recommended to buy to protect your property and valuables from various unforeseen events.

Yes, several natural calamities are covered by a standard fire & allied perils insurance in the UAE. Some of them are floods, storms, cyclones, earthquakes, and more.

Yes, at Policybazaar.ae, you can easily buy a fire and allied perils insurance plan from the comfort of your home in the UAE.

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