Fire insurance
ServicesFire insurance

Fire insurances are among different types of commercial insurances and sub-categories of assets insurance. Fire insurance is an agreement in which the insurer accepts the liability to compensate the assets and belongings of the insured person against receiving insurance fee for loss against the riskscovered in the insurance policy.

This insurance compensates the loss and damages cause to the tangible and intangible assets such as machinery, equipments, home furniture, office equipments, stores and shops and buildings and installations of industrial , non-industrial units and commercial and residential units.

Different types of fire insurances

1- Residential insurance which includes the building and its furniture.

2- Manufacturing units and industrial centers and warehouses  (industrial centers can be buildings, machinery, installations, raw material, in production material, stores stock and... which can be insured).

3- Non-industrial centers fire insurance (non-industrial centers include commercial, office, service, public centers and doctors’ offices and …. That can insure the building, installations, the stock , furniture and …).

4- Other places and insurable belongings and assets

Risk under insurance cover

These are categorized into two main and extra dangers.

1- Main risks: including fire, lightening and blast.

2- Extra dangers: which can be selected by the entity under insurance that includes the following:

- Earthquake


-suicide by putting fire

- Avalanche

- Glass breakage

- Riot

- Storm and tornado

- Theft with force entry

- Blast of containers under pressure

-flood of sea or river

- Water and waste pipe break

- Wastes caused by snow and rain

-Collision of external objects to the building

-Plane crash and helicopter and thrown off of their components

Different types of fire insurance in terms of conditions

1- Insurance with fixed capital

The applicant for insurance should announce the real and actual value at the time of filling the form so that in case of accident with the compensation he received can revive his property to its previous status and situation.

2- Insurance with negotiable conditions:

The insurance is issued based on the negotiable capital and in this way after agreement between the insurer and insured the agreed capital will be the basis of the probable loss compensation.

3- Insurance with replacing condition:

Inflation and increase of the prices have increased the price of buildings and equipments of industrial units and in this way those insured entities whose building and machinery is lost due to fire cannot replace them with the compensation. Therefore the request of the insured and the agreement of the insurer the insurance policy can be prepared based on replacing and reconstruction value so that these problems can be removed.

4- Insurance with first loss condition:

In cases that the probability of the total loss of the insured items due to the probable risks and risks covered under the insurance doesn’t exists, i.e. the properties are scattered, in such as way that in case of an accident only a part of the property will be lost or damaged, the insured can choose to have a first loss insurance which is designed with estimating the biggest possible loss through technical visits.

5- Insurance with floating condition:

This insurance is often issued for stock of the stores with changing stock. As per this insurance the insured entity will announces his store stock at the end of each month with supporting documents and in this method the basis would be the average of these reports.