Fire & Perils

This section can insure any buildings, contents (which are generally defined as anything you don’t sell), stock for sale and work you have in progress. You can also include the cost of removing debris, rewriting of records, employees goods and many other cost that you might have following a loss.  Cover can also be extended to include Accidental Damage.

Standard insured perils are:

  • Fire
  • Storm
  • Lightning
  • Explosion
  • Impact
  • Earthquake

The Fire & Perils section requires that you insure the items for full replacement value (except stock which is insured at invoice cost). Claims are settled on a replacement value basis, meaning the actual cost to replace the item (less GST). It is imperative that the sum insured you select represents the full replacement value of your assets. Failure to insure for the replacement value can result in the amount of a claim being reduced proportionally by the amount that you are underinsured.

Determining Sums Insured for Fire & Perils Insurance

Buildings: This should represent the full replacement value of the building, not including the value of the land.  Ask yourself what it would cost to re-build if the building was completely destroyed.  Costs of clearing the site should also be included under Removal of Debris.  There are specialists available to provide insurance valuations for complex or non-standard buildings.

Contents:  This should also represent full replacement value.  Compile a list of items the business owns and update it regularly.  Use catalogues, visits to stores etc. to place an accurate replacement value against each item.

Stock: This sum insured should represent the maximum amount of stock you could have at any one time.  Stock is insured for invoice value (i.e. what it costs you).

Capital Insurance Brokers will help you select the right Business Fire & Perils Insurance solution to meet your needs.

Call us on (02) 6282 7666 to speak with one of our Account Managers or start now and request an insurance quote.