What is the 'average' clause?

If your sum insured is less than the actual reinstatement value at the time of loss, the insurer pays claims proportionally. For example, a 50% under-insured property collects only 50% of any partial loss. We do sum-insured reviews to avoid this.

Is theft covered under Fire & Perils?

Not by default. Theft requires a separate Burglary policy, or it can be bundled into a combined commercial policy. We almost always recommend combining the two.

Do I need to declare new stock or machinery during the year?

For materially increased values, yes — to avoid under-insurance. Most policies include a 'stock declaration' or 'first loss' extension that gives some flexibility. We can structure cover that adjusts at renewal based on average stock holding.

Is the cover affected by riot and political violence?

Riot and strike are typically covered, but full political violence and terrorism (PVT) is a separate purchase. We recommend PVT for any business with significant assets in central business districts, near key infrastructure, or along corridor routes.

Business & Commercial Insurance

Fire & Perils (IAR) Insurance

Covers buildings, stock, plant, and equipment against fire, lightning, explosion, flood, and a defined list of named perils.

Get a Fire & Perils Quote Talk to an Advisor

Fire, lightning & explosionRiots & strikes optionalBusiness interruption add-onBank-loan compliant

Riots & Strikes

Optional Extension

Bank-Compliant

Sum Insured

Riots & Strikes

Optional Extension

Bank-Compliant

Sum Insured

Years Experience

Underwriter Partners

Claims Paid 2024

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Google Rating

Fire and Perils — often written as an Industrial All Risks (IAR) section — is the foundational property cover for any Kenyan business with physical assets. It pays to rebuild your premises, replace your stock, and reinstate your plant and machinery if any of a named list of perils occurs: fire, lightning, explosion, riot and strike, malicious damage, storm, flood, earthquake, impact, and aircraft damage.

Vike structures Fire & Perils cover so the sum insured actually matches the reinstatement cost of your assets — under-insurance triggers the dreaded 'average' clause, where the insurer pays only a proportion of any partial loss. We carry out a sum-insured review at every renewal and recommend periodic professional valuations for properties above KES 50M.

What It Covers

Buildings — structure, fixtures, fittings, and improvements
Stock — raw materials, work-in-progress, finished goods
Plant and machinery on a reinstatement basis
Furniture, fittings, and office equipment
Loss of rent following an insured peril (extension)
Architects', surveyors', and consulting engineers' fees (extension)
Removal of debris following an insured loss
Public authorities' costs to meet upgraded building regulations

Who It's For

Manufacturers, factories, and industrial operators
Retailers, wholesalers, and warehousing businesses
Hotels, restaurants, schools, and hospitals
Office tenants and commercial landlords
Any business with stock, equipment, or owned premises

Types We Cover

Each profile is rated and underwritten differently. Talk to us so we can match your specific situation.

Standard Fire Policy

The classic fire policy: fire, lightning, and limited explosion. The cheapest entry point but typically requires bolt-on extensions for full peril cover. Less commonly used today.

Fire & Special Perils

Fire plus a defined list of named perils — riot, strike, malicious damage, storm, flood, earthquake, impact, aircraft, and bursting of water tanks. The most common SME structure.

Industrial All Risks (IAR)

A broader 'all risks except what is excluded' wording, typically with higher policy limits and combined business interruption. Standard for medium and large businesses with significant capital assets.

Combined Fire & Business Interruption

Fire/IAR plus loss of profits, wages, and standing charges while the business is interrupted. Critical for any business that cannot trade from temporary premises after a major loss.

Real-World Scenarios

Warehouse fire destroys stock and roof structure

An IAR policy settles the stock at replacement cost (subject to the sum insured) and the building reinstatement, including debris removal and consulting engineer fees. Business Interruption (if taken) replaces the lost gross profit while the warehouse is rebuilt.

Flash flood damages production line in Industrial Area

Flood is a named peril under Fire & Special Perils. The policy settles the plant and machinery repair or replacement on a reinstatement basis. Many businesses discover too late that a Standard Fire policy excludes flood — we always confirm the full peril list before placement.

Lightning strike kills electronics during a storm

Lightning is covered under Fire & Perils — but consequential electrical damage to electronics often requires a separate Electronic Equipment extension or policy. We bundle the two whenever a client has significant IT or specialist electronics.

Optional Benefits & Add-ons

Business Interruption / Loss of Profits

Public Authorities' / building code upgrade costs

Architects' and consulting engineers' fees

Loss of rent (for landlords)

Goods stored in the open (subject to terms)

Theft and burglary (under combined wording)

Availability varies by underwriter. Our advisors will confirm what is available on your chosen policy.

Frequently Asked Questions

Fire & Perils is a 'named perils' policy — it covers a defined list. IAR is an 'all risks' policy — it covers everything that isn't specifically excluded. IAR is broader but pricier and typically reserved for larger businesses.