Owning a home or business is a big achievement, and protecting it should be just as important. You’ve probably already considered security measures like locks, alarms and CCTV cameras, but what about unexpected incidents like a short circuit, a gas leak or lightning? While we don’t expect these events to happen, being prepared with the right fire insurance can provide financial security and peace of mind.
If you’ve been researching property insurance, you may have encountered the term FLEXA. Whether you’re renewing your policy or buying a new one, understanding FLEXA will help you make an informed decision.
What is FLEXA in fire insurance?
FLEXA stands for Fire, Lightning, Explosion and Aircraft Damage—four key risks covered under a basic fire insurance policy. If your property is damaged due to any of these events, your insurance provider will compensate you based on your policy terms.
A breakdown of FLEXA coverage
Let’s go deeper into each component of FLEXA:
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Fire – Covers accidental fires, but with conditions
Fire damage is the primary reason people buy fire insurance. But here’s the catch—not all fires are covered. Your policy will cover accidental fires but may not compensate you if:
- The fire was caused due to negligence (e.g., leaving a stove unattended).
- It was a result of intentional arson by the policyholder.
- The fire originated from war, riots or acts of terrorism (unless additional coverage is taken).
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Lightning – Covers structural and electrical damage
A lightning strike can cause severe damage, from breaking walls to frying electrical systems. If your property suffers damage from a lightning strike, your fire insurance policy will cover repairs. However:
- Normal electrical failures caused by wear and tear are not covered.
- Damage due to indirect lightning strikes (like a power surge) may require an add-on policy.
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Explosion – Covers accidental explosions but with limits
Gas cylinder explosions, industrial accidents and boiler failures can cause major property damage. Fire insurance with FLEXA covers these accidents. But keep in mind:
- Explosions due to war, terrorism or nuclear activity are not covered.
- If you run a factory or a business that uses hazardous materials, you might need a specialised industrial insurance policy for complete protection.
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Aircraft Damage – Covers falling debris and crashes
While rare, damage from an aircraft crash or falling debris can be severe. Your fire insurance policy will cover the repairs if a plane or its parts damage your home or business. However, normal wear and tear caused by vibrations or indirect effects may not be covered.
Why FLEXA matters for property owners and business owners
If you own a property, protecting it from fire-related risks is a financial necessity, not a luxury. Rebuilding a damaged home or business can cost a significant amount. FLEXA ensures you don’t bear the entire financial burden yourself.
But most insurance buyers don’t realise that FLEXA is just the basic coverage. You need a more comprehensive fire insurance policy if you want better protection against theft, riots, floods or earthquakes.
FLEXA vs. comprehensive fire insurance
Understanding the differences can help you choose the right level of protection based on your needs.
| Feature | FLEXA fire insurance | Comprehensive fire insurance |
| Fire damage | Covered | Covered |
| Lightning damage | Covered | Covered |
| Explosion damage | Covered (Accidental only) | Covered (Broader coverage, including additional types of explosions) |
| Aircraft damage | Covered | Covered |
| Theft and burglary | Not Covered | Covered |
| Riots and strikes | Not Covered | Covered |
| Flood and earthquake damage | Not Covered (Requires add-on) | Covered (With the right policy extensions) |
| Malicious damage (vandalism, sabotage, etc.) | Not Covered | Covered |
| Water damage from firefighting efforts | Not Covered | Covered |
| Electrical short circuits | Not Covered | Covered (If it leads to a fire) |
Which policy is better?
A FLEXA fire insurance policy focuses on protecting against the four primary risks—fire, lightning, explosion and aircraft damage—making it a straightforward option if you need coverage for these specific events.
A comprehensive fire insurance policy extends protection to include additional risks such as theft, riots, floods and earthquakes. This may be suitable if you want broader coverage for various situations.
The correct choice depends on your property type, location, and level of risk exposure.
Which fire insurance policy should you choose?
The right insurance depends on your needs. If you want basic fire protection, a FLEXA policy may be enough. However, if you:
- Live in a flood- or earthquake-prone area
- Own a business or factory with valuable equipment
- Want protection from theft, riots or vandalism
Then, a comprehensive fire insurance policy is the better choice.
Key factors to consider when buying fire insurance
Whether you’re renewing your current policy or switching to a new insurer, keep these points in mind:
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Check the sum insured
The sum insured is the maximum amount your insurer will pay if your property is damaged. If it’s too low, you might not get full compensation. Always calculate the correct rebuilding cost before choosing the sum insured.
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Consider additional coverage for natural disasters
Basic fire insurance does not cover earthquakes, floods or landslides. If your area is prone to these disasters, ask about policy add-ons to ensure full protection.
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Compare premiums and coverage
A cheaper policy might save money upfront but cost you more in the long run if it lacks essential coverage. Compare benefits, not just price, before making a decision.
Conclusion
FLEXA offers essential fire insurance coverage, but it’s just the starting point. You should explore comprehensive property insurance options for wider protection—including theft, floods, riots and earthquakes. If you’re unsure, now is the perfect time to review your property insurance policy and explore better options. The right insurance can save you lakhs in potential losses, so don’t wait until disaster strikes.
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