Fire and Special Perils Insurance

Fire and Special Perils Insurance is an insurance policy designed to safeguard the insured against unforeseen losses that may result from fire, lightning, and domestic explosions. In addition, the policy covers destruction or damage caused by aerial devices, riots, strikes, civil commotion, bursting and/or overflowing of water tanks, storms, floods, earthquakes, bushfires, malicious damage, impact by vehicles, and explosions.

This policy ensures the protection of fixed assets such as buildings and their contents against physical loss or damage caused by fire. It also extends coverage to floating assets such as stocks. Fire and Special Perils Insurance provides essential financial protection for individuals and businesses whose properties are exposed to natural, accidental, or human-related risks.

In Nigeria, where fire outbreaks, flooding, and civil disturbances may occur unexpectedly, Fire and Special Perils Insurance plays a critical role in protecting property owners from severe financial loss.

What is Fire and Special Perils Insurance?

Fire and Special Perils Insurance is a property insurance policy that covers loss or damage to insured assets caused by fire and other specified perils. It is designed to indemnify the insured for damage to buildings, equipment, and stock arising from insured events listed in the policy.

Unlike basic fire insurance, this policy offers wider protection by including additional perils such as flood, storm, riot, and malicious damage. It is suitable for residential, commercial, and industrial properties and can be arranged based on the value and nature of the assets insured.

This policy can be purchased by:

Homeowners
Business owners
Manufacturers and warehouse operators
Retailers and wholesalers
Property investors and landlords

What Does the Policy Cover?

Fire and Special Perils Insurance provides cover against loss or damage caused by the following insured risks:

Fire
Lightning
Domestic explosions
Aerial devices and articles dropped from them
Riots, strikes, and civil commotion
Bursting or overflowing of water tanks and pipes
Storms and floods
Earthquakes
Bushfires
Malicious damage
Impact by vehicles or animals
Explosions

These perils can result in partial or total destruction of property, leading to heavy financial consequences without insurance protection.

Assets Covered Under the Policy

This policy covers both fixed and floating assets, including:

Fixed Assets

Buildings
Offices and shops
Warehouses and factories
Fixtures and fittings

Floating Assets

Stock and inventory
Raw materials
Finished goods
Furniture and equipment

By covering both physical structures and business stock, Fire and Special Perils Insurance offers broad protection for property owners and businesses.

Benefits of Fire and Special Perils Insurance

The Fire and Special Perils policy offers several important benefits:

Financial protection against major property losses
Coverage for both buildings and contents
Reduced business disruption after insured events
Protection against natural and man-made disasters
Peace of mind for property owners and business operators

For businesses with machinery and industrial equipment, this policy works well alongside Engineering Insurance to provide broader asset protection. Homeowners may also combine this policy with Home Protection Insurance for more complete residential coverage.

Who Needs Fire and Special Perils Insurance?

This policy is essential for anyone who owns or manages valuable property, including:

Business premises
Residential buildings
Factories and production facilities
Warehouses and storage facilities
Schools, hospitals, and offices

Organizations with goods in transit may also complement this policy with Motor Insurance or Goods in Transit Insurance to protect assets both on-site and while being transported.