What is STFI?

Let us begin with the STFI full form in insurance. It is an abbreviation for Storm, Tempest, Flood, and Inundation — natural calamities that can strike anyone, anytime.

STFI is basically an add-on that makes your fire insurance policy even more comprehensive. Besides covering the fire damages, an STFI cover also covers you against the common natural hazards as discussed above.

While some fire insurance policies, like our Fire and Burglary insurance, have it as an in-built coverage, some others require you to buy it as an add-on by paying some additional amount.

Storm and Tempest: The letters ‘S’ and ‘T’ in the STFI full form stands for Storm and Tempest. Note that these terms are used interchangeably in a fire insurance policy. It refers to the atmospheric disturbances that lead to powerful winds, rains, thunderstorms, hailstorms, and sometimes even snow. Storm is a common occurrence that may lead to damage to the insured property and goods.

Flood and Inundation: Storms and heavy rainfall can lead to overflowing of rivers, dams, and even sea which can result in flooding in the nearby areas. On the other hand, inundation is a type of flood resulting from the overflow of water.

Both conditions can lead to significant damages to the insured property and are hence covered in a fire insurance policy.

Cyclones: Cyclones can be very destructive in nature. They can lead to heavy losses across the entire city or town and may impose life-threatening situations. For these traits, they are sometimes also referred to as violent storms.

They usually take form in the Indian Ocean regions and trigger destructive winds with a speed of over 280 kilometres per hour.

Hurricanes and Typhoons: Hurricanes and typhoons are types of dangerous storms that are formed in different regions. A hurricane is a storm that commonly forms over hot or warm water and can result in heavy destruction of the insured property.

On the other hand, typhoons are prevalent in tropical atmospheres, leading to massive destruction.

Tornado: It is another natural calamity that can result in subsequent damages to the insured property and goods. A tornado usually forms a vortex on the surface of the earth.

Thus, if it occurs and the insured object or property is within its vortex, nothing can save it from undergoing significant destruction.

Mother nature is very unpredictable; you never know when a natural disaster may strike your business. An SME insurance policy with an STFI cover becomes very useful at this juncture. It helps you stay covered under all kinds of risks related to fire and natural hazards.

As we have discussed, an STFI cover is a critical fire insurance add-on that is purchased by business owners and individuals who want extra protection against natural disasters like storms, tornadoes, floods, inundation, and more.

It is especially recommended for individuals whose insured property is within the areas prone to natural calamities. So, secure your business by purchasing suitable fire insurance with STFI coverage.

Meanwhile, you can also check out our Tata AIG Fire and Burglary Insurance.

How to check if my fire insurance policy offers STFI coverage?

Most fire insurance policies offer coverage for natural calamities. However, there can be some exclusions. All the information regarding the STFI cover can be found in your policy documents. If not, it is advisable to contact your insurance provider for clarity.

What are the exclusions of STFI cover?

The exclusions of STFI vary from one fire insurance policy to another. However, the common ones include damage or loss due to willful negligence of the policyholder. It means you might not be covered in case your goods or items are damaged due to poor maintenance and intentional negligence.

Who Should Buy an STFI Cover?

Any business owner who is looking for extra protection against natural calamities such as storms, floods, cyclones, etc., should consider purchasing STFI cover with their fire insurance.