Definition - What does Spontaneous Combustion mean?
Spontaneous combustion is what happens when an organic matter is set on fire because of an internal source. In terms of insurance, it is a special clause in fire and property policies that entitles the policyholder for compensation in case of damage. It is special because it is not always included in common property and fire policies.
Insuranceopedia explains Spontaneous Combustion
The purchase of policies is reflected in the risks that can be foreseen with the insured subject. A property located in an area where earthquakes often happen is insured with a policy that covers damage brought about by earthquake.
The same goes with commercial buildings containing hazardous elements such as flammable liquids or oils. Even agricultural produce can set itself on fire with the right weather conditions. Coal, of course, is a source of fuel but its storage can also cause accidental fire. So, industries or commercial endeavors with these objects must modify their property or fire insurance by including the self-combustion clause in it.