Diwali fire safety: How home insurance works, what it covers and how to protect your home from accidental fire damage

Diwali is around the corner and homes across the country are getting ready to light up diyas (small oil lamps) and fairy light, while celebrations will be accompanied by firecrackers. However, the festive season also brings the risk of accidental fires caused by electrical short circuits, firecrackers or unattended diyas and candles, particularly when residents step out of their homes.

In such circumstances, having a home insurance policy can offer financial protection against unexpected damage to your property and belongings. While it cannot prevent such incidents, the right policy can help you manage the financial burden of repairs and replacement if an unfortunate event occurs.

A home insurance policy, with premiums starting as low as ₹18 per month, can cover both structural damage and loss or damage to household contents caused by fire, subject to the policy's terms and conditions.

• Building cover: Protects the insured structure, including walls, ceilings, floors, doors and other covered structural components.
• Contents cover: Protects household belongings such as furniture, appliances, electronic devices, clothing and other insured personal possessions.

Some policies also cover additional expenses like temporary accommodation or loss of rent, subject to policy terms, if the house becomes uninhabitable, said Ashwini Dubey, Business Head of Home Insurance at Policybazaar.

Dubey further warned that homeowners must check the coverage limits, exclusions and claim settlement conditions as that vary from insurer to insurer. “If someone lives in a housing society, its building insurance may not cover your personal belongings, making separate contents insurance important,” he added.

Some other exclusions include careless placement of diyas, candles or firecrackers during Diwali, deliberate acts and wilful misconduct.

The expert advised people against bursting firecrackers in enclosed spaces, including balconies and inside homes, and cautioned them against leaving diyas or candles unattended when stepping out of the house.

For example, fire damage is generally covered under standard home fire insurance, while damage limited to an electrical appliance due to a short circuit may be treated differently under the policy wording. Claims are also subject to the sum insured and applicable conditions.

While home insurance policy covers home structure and contents, medical expenses for injuries sustained by a person in a fire are covered only if the customer has opted for add-on like personal accident cover when they purchased the home insurance policy, Dubey noted.

The benefit of an add-on in such cases can be used towards treatment and related expenses, subject to the policy’s terms and conditions.

To file a home insurance claim, customers generally need to submit photographs or videos of the damage, a copy of the policy, proof of ownership or purchase invoices for damaged belongings, and a duly filled claim form.

“In case of a fire, the insurer may also ask for a fire brigade report or police report, depending on the circumstances,” the expert noted.

Additionally, he advised homeowners to ensure that the insurance policy is issued in the property owner's name, matching the name recorded in the relevant government property documents.

Eshita Gain is a digital journalist at Mint, where she joined in May 2025. She writes on corporate developments, personal finance, markets, and business trends, with a focus on delivering timely and relevant stories to a broad audience. <br><br> While her core beat lies in business and finance, she is not confined to a single niche and frequently explores stories across domains, including international relations and policy developments. <br><br> She holds a postgraduate diploma in business and financial journalism by Bloomberg from the Asian College of Journalism (ACJ), Chennai. During her time there, she received rigorous training in tracking financial data, interpreting corporate filings, and reporting on business developments. She has pursued her graduation from St. Joseph’s University, Bengaluru in a multi-disciplinary course. Her majors included Journalism, International Relations, peace and conflict studies. <br><br> Eshita has previously worked in digital marketing, which enables her to write SEO friendly copies that are clear and engaging. <br><br> Her primary interest lies in breaking down complex subjects and writing clear, accessible copies that inform readers. She aims to bridge the gap between technical financial language and everyday understanding. Outside the newsroom, Eshita enjoys reading non-fiction, and exploring new places, constantly seeking fresh perspectives and stories beyond headlines.

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