Spontaneous Combustion
What Does Spontaneous Combustion Mean?
Spontaneous combustion refers to the ignition of organic matter caused by an internal source. In insurance, it is a specific clause in fire and property policies that provides the policyholder with compensation in the event of damage caused by spontaneous combustion. This clause is considered special because it is not typically included in standard property and fire insurance policies.
Insuranceopedia Explains Spontaneous Combustion
The purchase of insurance policies is typically guided by the risks associated with the insured subject. For example, a property located in a region prone to earthquakes is usually insured with a policy that includes coverage for earthquake-related damage.
Similarly, commercial buildings housing hazardous materials like flammable liquids or oils require tailored coverage. Agricultural produce, under certain weather conditions, can ignite spontaneously. Likewise, coal, while a valuable fuel source, poses a risk of accidental fire during storage. Therefore, industries or businesses dealing with such materials should enhance their property or fire insurance policies by incorporating a self-combustion clause to ensure adequate protection.
