Explosion Insurance

Definition - What does Explosion Insurance mean?

Explosion insurance refers to insurance coverage that covers property loss resulting from rapid nuclear or chemical reactions that produce heat, light, noise and a shock wave, or otherwise commonly known as an explosion. Usually written as part of an extension on a fire policy, it does not, however, cover the loss of pressurized instruments, pipes, and steam boilers. These pieces of equipment require separate policies.

Insuranceopedia explains Explosion Insurance

As explosion insurance offers extended coverage, it costs extra. Besides solely explosions, it may include coverage from unlikely risks, such as property damage resulting from vehicles, airplane crashes, and riots, as well as more typical perils, such as smoke and weather damage. Although it is normally geared toward commercial industries, homeowners may also benefit from explosion coverage. As home explosions can result in losses in the tens of thousands of dollars, it may make sense for homes at a higher risk. Common sources include aerosol cans, oil furnaces, and propane grills.

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