Standard Fire & Special Perils (SFSP)
The Standard Fire & Special Perils Policy (SFSP) is one of the most widely used property insurance policies in India. It provides coverage against loss or damage to insured assets caused by fire and a range of specified natural and man-made perils. This policy forms the core of property insurance planning for businesses, factories, offices, and warehouses.
What Does SFSP Cover?
SFSP policy protects physical assets such as:
- Buildings & Structures Offices, factories, warehouses
- Plant & Machinery Equipment, installations, production units
- Furniture, Fixtures & Fittings Office interiors and utilities
- Stock & Inventory Raw materials, semi-finished and finished goods
Perils Covered Under SFSP
The policy covers loss or damage due to the following risks:
Fire & allied perils
- Fire
- Lightning
- Explosion / implosion
Natural calamities
- Storm, cyclone, typhoon, tempest, hurricane, tornado
- Flood and inundation
- Earthquake (optional add-on in some cases)
- Subsidence and landslide (including rockslide)
Man-made risks
- Riot, strike, malicious damage (RSMD)
- Impact damage (e.g., vehicle hitting property)
- Aircraft damage
Other covered events
- Burst/overflow of water tanks, pipes, and apparatus
- Leakage from automatic sprinkler installations
- Bush fire
Important add-ons / extensions
- Earthquake cover (if not included by default)
- Escalation clause (automatic increase in sum insured)
- Architects, surveyors & consulting engineers fees
- Debris removal expenses
- Spontaneous combustion (for specific industries)
- Impact damage due to insured’s own vehicles
Exclusions (what is not covered)
- War and nuclear risks
- Normal wear and tear or gradual deterioration
- Electrical/mechanical breakdown (covered under separate policies)
- Theft without forcible entry (covered under burglary policy)