A standard Fire Policy provides cover against loss of or damage to Insured property as a result of fire, lightning and domestic explosion. Property to be insured may consist of the following:-

	Building
	Property rental
	Plant & Machinery
	Stock-in-trade

Subject to the Insured’s agreement and payment of additional premium, the basis policy can be extended to cover the following named perils:

	Aircraft Damage
	Earthquake and Volcanic Eruption
	Storm Tempest
	Flood
	Explosion.
	Impact Damage
	Bursting or Overflowing of Water Tank Apparatus Pipes
	Bush/Lalang fire
	Subsidence And Landslip
	Riot, Strike And Malicious Damage
	Damage by Falling Trees or Branches and Objects
	Sprinkler Leakage

Basis of Sum Insured

The value of the Sum Insured of the property to be insured is based on the cost of restoring the damaged property to or replacing it with property similar in condition to that at the time of the loss. The basis of the sum insured (i.e. Indemnity values) for the various items insured should be:-

	Building	-	The current cost of reconstruction of the building to the original form less deduction justified for betterment.
	Plant & Machinery	-	The cost of replacement with a new item less deduction for depreciation due to wear and tear.
	Stock In Trade	-	i) Raw materials: the cost of materials including freight and duty ii) Finished goods: the cost of raw materials plus production cost.