Fire is one of the most devastating risks any property owner—whether residential or commercial—can face. In just minutes, flames can reduce a lifetime of investment, inventory, or cherished belongings to ashes. Yet many people assume their standard policy covers “everything.” That is why Oxbridge Insurance Brokers Ltd offers a dedicated Fire Policy: a focused, reliable, and affordable plan that protects you specifically against fire and its related perils, with no hidden gaps.
What Is a Fire Policy?
A Fire Policy is a specialised insurance contract that indemnifies the policyholder for loss or damage to insured property caused directly by fire, lightning, and typically explosion (often called “allied perils”). Unlike comprehensive policies that bundle many risks, a Fire Policy is ideal for properties where fire is the primary concern—for example, warehouses, factories, rural homes, landlords with multiple properties, or businesses with high‑value stock.
At Oxbridge Insurance Brokers Ltd, we help clients understand exactly when a standalone Fire Policy makes sense and how to tailor it to their unique risk profile.
What Does a Fire Policy Cover?
A standard Fire Policy (with allied perils) covers the following events unless explicitly excluded:
1. Fire
Actual ignition—not just heat or scorching. The fire must be accidental or from an unforeseen cause. Examples include:
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Electrical short circuit
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Kitchen grease fire
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Cigarette or candle accident
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Arson by a third party
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Wildfire spreading to insured premises
2. Lightning
Direct lightning strike causing:
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Structural damage (roof, walls, electrical system)
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Damage to electronics, appliances, or machinery
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Secondary fire caused by lightning strike
3. Explosion (typically included)
Covers damage from:
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Boiler or gas cylinder explosions
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Dust explosions (e.g., grain silos, flour mills)
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Explosions from neighbouring premises
Important: Some policies exclude explosion by default. We always check and advise.
What Property Can Be Covered Under a Fire Policy?
| Asset Type | Typical Coverage |
|---|---|
| Buildings (residential or commercial) | Walls, roof, permanent fixtures |
| Contents (home or office) | Furniture, carpets, electronics |
| Stock & raw materials | Goods held for sale or production |
| Plant & machinery | Manufacturing equipment, generators |
| Tenants’ improvements | Renovations done by a tenant |
You can insure one, several, or all categories under a single Fire Policy.
What Is NOT Covered by a Fire Policy (Key Exclusions)
At Oxbridge Insurance Brokers Ltd, we believe transparency prevents claim rejections. Standard exclusions include:
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Fire caused by war, invasion, or civil commotion (separate terrorism cover required)
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Radioactive contamination or nuclear risks
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Willful act or gross negligence by you or your employees
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Spontaneous combustion (e.g., oily rags self‑igniting) unless specific cover added
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Fire caused by earthquake or volcanic eruption (may require separate policy)
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Loss of profits or consequential losses – fire policy covers property damage only, not business interruption (add that separately)
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Property left unoccupied for more than 30–60 consecutive days (varies by insurer; notify us if premises will be vacant)
Fire Policy vs. Comprehensive Policy – Which One Do You Need?
| Feature | Fire Policy | Comprehensive Policy |
|---|---|---|
| Fire, lightning, explosion | ✅ Covered | ✅ Covered |
| Theft, flood, storm, vandalism | ❌ Not covered | ✅ Covered |
| Third‑party liability | ❌ Not covered | ✅ Usually included |
| Premium cost | Lower (targeted) | Higher (broader) |
| Best for … | Low‑risk areas, secondary properties, high‑fire‑risk businesses | Primary homes, full‑service businesses |
Example where Fire Policy makes sense: A rural warehouse storing non‑flammable goods (e.g., pipes, cement). Fire risk is moderate, flood and theft risk low. Paying for full comprehensive cover is unnecessary.
How to Determine the Right Sum Insured (No Underinsurance!)
Many fire policy claims are reduced because the policyholder undervalued their property. Follow these rules:
For Buildings
Insure at full rebuilding cost, not market price. Rebuilding costs include:
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Demolition and debris removal
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Architects and surveyors fees
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Site clearance and rebuilding to current building codes
For Stock
Insure at replacement value (what it would cost to buy new stock today, not original purchase price).
For Machinery
Insure at reinstatement value (new equivalent machine + installation).
Penalty for underinsurance: The “average clause” reduces your claim by the same percentage you were underinsured. Example: Insured for GHS100k, actual value GHS 200k (50% underinsured). A GHS 50k fire claim is cut to GHS25k.
Optional Extensions for Your Fire Policy
We can enhance your basic Fire Policy with these add‑ons:
| Extension | Purpose |
|---|---|
| Debris removal after fire | Covers cost of clearing site (often capped at a % of sum insured) |
| Fire brigade charges | Some local authorities charge for call‑outs |
| Damage by water used to extinguish fire | Firefighting water damage is often excluded; add this |
| Spontaneous combustion cover | For businesses with oily rags, hay, coal, or chemicals |
| Riot, strike, and malicious damage | Broader protection beyond fire alone |
What to Do Immediately After a Fire (Claims Guide)
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Ensure safety – Do not re‑enter until fire services declare it safe.
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Notify Oxbridge Insurance Brokers Ltd immediately – We will open your claim within hours.
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Preserve evidence – Do not clean or dispose of damaged items until insurer inspects (unless hazardous).
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Take photographs and videos – Wide shots and close‑ups from multiple angles.
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Mitigate further loss – Board up broken windows, cover holes in roof (reasonable temporary repairs are covered). Keep receipts.
Real‑Life Scenario: Fire Policy in Action
Mr. Thompson owned a small rented shop. A faulty refrigerator compressor overheated and triggered a fire at 3am. The fire destroyed stock worth GHS 40,000 and damaged the electrical system, requiring rewiring.
Without fire policy – Mr. Thompson would have paid GHS 40,000 + rewiring costs out of pocket. His tenant sued him for lost income.
With Fire Policy via Oxbridge Insurance Brokers Ltd – The policy paid full replacement cost of stock (GHS 40,000) and building repairs (GHS 18,000 for rewiring and smoke damage). The tenant’s loss of income was not covered (that requires business interruption), but Mr. Thompson avoided bankruptcy.
Why Choose Oxbridge Insurance Brokers Ltd for Your Fire Policy?
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Independent advice – We are not tied to any single insurer. We find the right fire policy for your specific property type and location.
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Clear exclusions explained upfront – No fine‑print surprises.
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Claims advocacy – When fire strikes, you need a broker who fights for you. We handle the paperwork, negotiations, and follow‑up.
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Competitive premiums – Because fire is a defined peril, premiums are often lower than comprehensive cover. We help you avoid over‑insuring or under‑insuring.
Final Word – Fire Doesn’t Wait, Neither Should You
Fire is unpredictable, unforgiving, and total. A dedicated Fire Policy from Oxbridge Insurance Brokers Ltd gives you targeted, affordable, and reliable protection for your buildings, stock, machinery, and contents. It is not about expecting a fire—it is about being ready if one happens.
Contact us today for a free fire risk assessment and a no‑obligation quote. We will help you decide whether a standalone Fire Policy or a comprehensive package suits you best.
Call or email Oxbridge Insurance Brokers Ltd – Protecting what matters, before the flames.
