Storm and Tempest Coverage in Fire Insurance

Storms, tempests and other natural disasters can cause severe damage to homes, offices and commercial properties. These events are unpredictable and often leave behind heavy financial losses. To financially safeguard against such risks, insurers provide specialised coverage known as Storm, Tempest, Flood and Inundation (STFI) under fire insurance policies.

This blog explains what storm and tempest insurance means, how it fits under fire insurance and how you can claim compensation in case of weather-related damage.

What is storm and tempest insurance?

Storm and tempest insurance is a cover that financially protects your property against damages caused by high winds, cyclones and tempests. It typically falls under the broader STFI cover, which includes storm, tempest, flood and inundation. This coverage ensures financial protection if your property suffers physical loss or damage due to violent weather events.

Storms are usually defined as strong winds accompanied by rain, hail or snow, while tempest refers to a severe storm or violent wind activity. Whether your property is residential, commercial or industrial, this cover helps compensate for repair or reconstruction costs after such natural events.

What is fire insurance?

Fire insurance is a type of property insurance that provides financial protection against loss or damage to a property caused by fire or related perils. Besides fire, it can cover events like lightning, explosion, implosion and STFI. It helps policyholders recover from physical damage to structures, machinery, furniture or stock, depending on the type of coverage chosen.

Fire insurance provides financial cover against

A standard fire insurance policy provides cover against several natural and man-made perils, such as:

• Fire and lightning
• Explosion or implosion
• Riot, strike or malicious damage
• Storm, cyclone, typhoon, tempest, hurricane, flood or inundation

Note: This is an indicative list. Please read the policy wordings for the complete list of inclusions and exclusions.

Different types of fire insurance policies that provide protection against STFI

Fire insurance policies come in different forms to cater to varying property sizes and business needs. The inclusion of storm and tempest coverage under these policies helps safeguard against losses caused by extreme weather. Here are different fire insurance types:

1. Fire insurance for small businesses

This policy offers protection for micro and small business owners. It typically covers building structures, office equipment and inventories against perils such as fire, flood, storm and tempest.

2. Fire insurance for medium businesses

Designed for medium-sized enterprises, this policy provides broader coverage for business premises, production machinery, raw materials and finished goods. Storm and tempest coverage ensures minimal financial disruption in case of weather-related damage.

3. Fire insurance for large businesses

Large businesses often require higher coverage limits and customised add-ons. These policies can include protection for factories, warehouses and manufacturing units. Including storm and tempest cover helps reduce downtime and financial loss after severe weather events.

4. Fire insurance for housing societies

This cover is suitable for residential societies and apartment complexes. It protects common areas, lifts, electrical fittings and shared facilities from damages caused by storms or tempests or covered events.

Who needs storm and tempest coverage under fire insurance?

Storm and tempest coverage is useful for:

• Homeowners living in coastal or cyclone-prone areas
• Industrial and commercial property owners with valuable assets
• Small and medium enterprises with warehouses or storage units
• Housing societies managing multiple residential blocks

Anyone whose property is exposed to weather-related risks should consider adding this coverage to their fire insurance policy.

What are some features of storm and tempest in fire insurance?

Some of the common features of storm and tempest cover under a fire insurance policy include:

• Comprehensive protection: Covers loss or damage due to strong winds, cyclones and tempests.
• Repair and reinstatement cover: Compensates for the cost of rebuilding or repairing damaged structures.
• Add-on option: Often available as part of the standard fire and special perils policy.
• Wide applicability: Suitable for residential, commercial and industrial properties.

Note: The availability and extent of coverage may vary between insurers. Always check the policy document for details.

Sum insured in fire insurance

The sum insured represents the maximum amount an insurer will pay in case of loss or damage. For property insurance, the sum insured should ideally match the replacement or reinstatement cost of the property and its contents. Underinsuring can lead to partial claim settlements, while over-insuring may increase premium costs unnecessarily.

Factors that influence premium for STFI cover

Several factors determine the premium amount for storm and tempest coverage under a fire insurance policy. These include:

• Type of property: Residential, commercial or industrial properties have different risk levels.
• Location: Properties in cyclone or flood-prone areas attract higher premiums.
• Construction material: The quality of construction influences the likelihood of damage.
• Sum insured: A higher sum insured leads to a higher premium.
• Safety measures: The presence of safety features such as storm shutters or reinforced roofing may reduce the premium.

Insurers evaluate these parameters to assess the risk profile and calculate the premium accordingly.

Claim process for storm and tempest damage

If your property suffers storm or tempest damage, the claim process generally involves the following steps:

1. Notify the insurer: Inform your insurer immediately after the incident.
2. Document the damage: Take photographs or videos of the affected areas.
3. Submit required documents: Provide claim forms, repair estimates and ownership proofs.
4. Survey and assessment: The insurer appoints a surveyor to assess the extent of damage.
5. Claim settlement: Once the assessment is complete, the insurer processes the claim based on the policy terms and sum insured.

The specific process and documentation requirements may vary across insurers. Always refer to your policy wording for details.

Conclusion

Storm and tempest coverage plays a crucial role in protecting property owners from weather-related losses. By including STFI cover under fire insurance, you can ensure financial stability even when faced with unpredictable natural disasters. Whether you own a home, office or factory, reviewing your policy terms and updating the coverage regularly can help secure your assets against potential risks.

FAQs

• Is storm and tempest cover included in all fire insurance policies?

It depends on the insurer and the type of policy. Some standard fire insurance policies include storm and tempest cover, while others may offer it as an optional add-on. It is best to review the policy wording or check with your insurer.

• What types of properties can be insured under fire insurance?

Both residential and commercial properties can be insured. Coverage can extend to buildings, machinery, furniture and stock, depending on the policy.

• Does storm and tempest insurance cover loss of income due to damage?

Typically, storm and tempest cover protects physical property damage. Business interruption or loss of income coverage may be available as a separate add-on. Please check your policy wording for specifics.

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.