STFI in Fire Insurance: Protection Against Natural Disasters

You will be shocked to know that even though floods have become a common phenomenon in northern India recently, only 8% of the economic losses from natural disasters are covered! We know that natural disasters do not just destruct homes; they disrupt business operations, shatter livelihoods, and lead to huge financial losses. So, how will you protect yourself in case such a calamity befalls you? The answer is: get an STFI cover.

You must be wondering what is STFI cover! This article is all about STFI (Storm, Tempest, Flood, and Inundation) in fire insurance, its importance, how does it work, and how to ensure maximum protection with your STFI cover. Bajaj General Insurance, a trusted insurer offers STFI coverage in fire insurance, so that you can protect yourself from natural calamities.

What is STFI in Fire Insurance?

Imagine this: To protect your home or office from accidental fire, you have purchased a fire insurance policy. But what if a sudden downpour causes floods and damages your office equipment, or a cyclone causes cracks in your building? At such times, a fire insurance policy may not cover all these calamities and hence, an STFI cover is a must.

STFI or Storm, Tempest, Flood, and Inundation is an add-on or extension to your fire insurance policy. It protects against natural disasters like storms, cyclones, hurricanes, floods, waterlogging, etc. A fire insurance policy provides financial protection against damages caused by fire. But an STFI cover guards your property against these natural disasters.

It is similar to upgrading your phone with extra features; you still have the basic fire protection, but add-ons secure you against nature’s fury.

Why is STFI Coverage Important?

An extra cover in the form of STFI added to the basic fire insurance policy is important because of the following reasons:

Natural Disasters Are Common in India

We live in a country where cyclones hit coastal areas, floods disrupt entire states during monsoons, and storms can cause serious property damage. And we all know that India faces extreme weather events almost every year. Without STFI cover, you are exposed to these risks and may have to bear the entire loss.

The Cost Of Repair is Huge

Think about replacing machinery in a factory after flood damage or redoing the interiors of your home after waterlogging. Such expenses may reach lakhs and, for businesses, even crores. STFI cover means the insurer contributes to the recovery costs.

Your Business Can Continue Without Disruption

A natural disaster can halt the work of shop owners, MSMEs and factories and it can mean weeks or months of downtime. If your stock, raw materials, or equipment are ruined, it directly hits your income. With STFI coverage, at least the financial recovery is possible, so you can restart faster.

Reassurance And Comfort

STFI cover provides reassurance so that you know you are protected against major perils like fire, floods, and storms. It brings the comfort of not having to live in constant fear.

Small Premium For Protection Against Huge Potential Loss

The extra premium you pay for STFI is usually small compared to the potential loss. You pay a little extra today to save yourself from a massive financial loss tomorrow.

How Does STFI Work in a Fire Insurance Policy?

Here is how STFI coverage works in a fire insurance policy:

• You buy or add STFI cover with your fire insurance:

When you purchase a fire insurance policy, you can choose to include STFI protection and pay the premium amount.

• STFI cover applies when losses are caused by natural disasters:

Suppose a cyclone damages your warehouse roof or floodwaters ruin your stored goods. A normal fire insurance policy will not cover this. But if you have purchased STFI cover, the insurer will step in to cover you against the natural perils.

• What Is Included?
  • Storm: High-speed winds, cyclones, hurricanes, or typhoons.
  • Tempest: These are violent windstorms.
  • Flood: Overflowing of water that enters your premises.
  • Inundation: Waterlogging or accumulation of water that can cause damage to your property.
• What Is Not Covered?
  • Damage that has occurred due to poor maintenance (for example, a leakage problem of roof that you did not repair).
  • Gradual wear and tear.
  • Losses that are preventable but ignored.
  • Insurance covers sudden and unforeseen events and not acts of negligence.
• Claim process works in the following manner:
  • You inform your insurer right after the damage.
  • The insurance company will send a surveyor to check the extent of loss.
  • After the survey and verification process is complete, the claim amount is settled based on your policy terms (like sum insured, exclusions, etc.).

Getting the Best Value From Your STFI Cover

Now that you have added STFI cover to your fire insurance policy, that is a good decision. But you must know how to use it wisely so you are not unprepared and stuck when a storm or flood strikes.

Know Exactly What is Covered

Sometimes, small details like exclusions or claim limits matter a lot. For example, if your warehouse roof was already weak and collapsed during heavy rain, the insurer may not pay because it was due to poor maintenance.

Keep Documents Ready

Suppose floodwaters have damaged your store inventory and you want to file a claim. If you have bills, purchase records, and photos, the process of filing claims and getting approved is much smoother. Lack of documentation may lead to unnecessary delays.

Act Fast During A Claim

If a storm or flood damages your property, don’t wait around. Inform your insurer immediately so that it will lead to quick settlement of your claim.

Maintain Your Property

This part is usually ignored. Insurance is for sudden, unexpected disasters and not for wear and tear. If your drains are clogged and waterlogging damages your goods, the insurer will not accept the claim. So, regular maintenance is of utmost importance to actually get the full benefit of your STFI cover.

Look At Add-Ons Too

STFI is a powerful protection tool but to strengthen your protection even more, check the additional covers too. For example, if your area is vulnerable to earthquakes or landslides, add those covers as well.

Conclusion

Fire is not the only cause of destruction to your home, property, or business. Storms and floods can create havoc too. To stay protected against these perils, getting STFI cover along with a fire insurance policy can be a prudent decision.

Bajaj General Insurance provides comprehensive coverage, fast claims, and a supportive team that helps in recovery from the disaster. To know more, visit Bajaj General Insurance.

FAQs

1. What is STFI cover in fire insurance?

STFI is for Storm, Tempest, Flood, and Inundation. It is an add-on cover that protects your property from natural disasters along with fire.

2. Is STFI cover included in a normal fire insurance policy?

No, it is not included but you need to add it separately and pay a small extra premium.

3. Why do I need STFI cover?

Floods, storms, cyclones, and weather related events are common in India and repairs can cost a lot. STFI helps you to get reimbursed for these damages.

4. What losses are covered under STFI?

Damage caused by cyclones, strong winds, floods, heavy rain, and waterlogging is covered.

5. What is not covered under STFI?

Losses due to poor maintenance, gradual wear and tear, or negligence are not covered.

*Standard T&C apply

**Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

***Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.