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. Owners of warehouses, manufacturing sites, and storage facilities that deal with these materials usually compare quotes for business insurance that includes property coverage for fire damage. Agricultural produce, under certain weather conditions, can ignite spontaneously. Likewise, coal, while a valuable fuel source, poses a risk of accidental fire during storage. Homeowners run into smaller-scale versions of the same risk from things like oily rags or stored mulch, and whether a standard policy pays out depends on how the cause is classified, so it helps to read up on what homeowners insurance covers when it comes to fire. 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.