Fire insurance is essential for safeguarding your business from fire-related risks. It covers your property and assets and ensures financial security if the worst happens. When you buy a fire insurance policy, you might come across the term STFI. This is an additional coverage that protects against specific natural disasters, such as storms and floods, that could damage your property.
Therefore, adding STFI to your fire insurance policy can provide peace of mind, especially in areas prone to these events. Keep reading to understand STFI full form and the risks covered.
Terms under STFI
The full form of STFI is Storm, Tempest, Flood and Inundation. STFI covers a range of natural calamities, ensuring that your business is protected from more than just fire damage. The risks covered under STFI in insurance include:
- Storm and tempest: The terms storm and tempest are often used interchangeably in fire insurance policies. These weather events bring strong winds, heavy rain, hailstorms and thunderstorms. Storms are common and can cause significant damage to property and goods. Therefore, having insurance coverage for these events can help prevent financial setbacks.
- Flood and inundation: Storms and heavy rainfall can cause dams and rivers to overflow, resulting in flooding in nearby areas. Inundation is a specific type of flooding where water exceeds the normal limits. Given the potential for substantial damage from both flooding and inundation, these events are typically included in fire insurance coverage.
- Cyclones: Cyclones are very powerful and can cause widespread damage to infrastructure, posing serious risks to lives as well. They usually form in the ocean and produce very strong winds, leading to heavy destruction. Fire insurance with STFI covers damages caused by cyclones, helping to protect property and provide financial relief.
- Hurricanes and typhoons: Hurricanes and typhoons are intense storms that can cause significant damage to both life and property.
- Tornado: Tornadoes are another type of natural disaster that can cause major damage. A tornado forms a rotating column of air that extends to the ground, and if it strikes property or goods, they are likely to suffer severe damage.
Conclusion
STFI coverage is essential for safeguarding your property and belongings against the financial impacts of extreme weather events like storms, floods and inundations. It provides valuable protection and peace of mind. However, before purchasing fire insurance or adding STFI coverage, it is important to carefully review the policy's inclusions and exclusions to make sure you are properly covered.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It is advised to verify the currency and relevance of the data and information before taking any major steps. Please read the sales brochure / policy wordings carefully for detailed information about on risk factors, terms, conditions and exclusions. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.