This is the main policy section. This section can insure any buildings, your contents (which are generally defined as anything you don’t sell), stock for sale and work you have in progress.
You can also include the cost of removing debris, rewriting of records, employees goods and any other cost that you might have following a loss. Accidental damage can also be included as an option.
Standard insured perils are:
The fire & perils section requires that you insure the items for full replacement value (except stock which is insured at invoice cost). Claims are settled on a replacement value basis, meaning the actual cost to replace the item.
It is imperative that the sum insured you select represents the full replacement value of your assets. Failure to insure for the replacement value can result in the amount of a claim being reduced proportionally by the amount that you are underinsured.
Note that very few policies will cover flood. Flood is usually defined as water escaping onto normally dry land from any river, creek, lake, reservoir.