What is the STFI Full Form in Insurance?
STFI Full Form in Insurance is Storm, Tempest, Flood and Inundation. It is a short form of calamity that can strike anyone at any time. STFI is basically an add- on that helps to make the insurance policy a lot more comprehensive. It predominantly covers the insured against fire and other natural disasters like floods, storms, etc.
Risks that are covered under STFI:
Risks that are covered under STFI are damages occurring secondary to thunderstorms, powerful winds, hailstorms, floods and inundations, cyclones, hurricanes and typhoons, and tornadoes. STFI is a significant insurance add-on that protects the insured against damage, losses, and destruction caused by natural calamities. The location, level of risk and the value of the property will determine the average cost of all the STFIs.
Importance of STFI coverage in the insurance:
Adding STFI add-on to insurance coverage has become increasingly important to safeguard businesses, individuals, and communities from the adverse consequences of cyclones, floods, storms, and inundations, as the world is undergoing climatic change at a great level. Insurance companies will make adjustments to the STFI coverage terms and limits after monitoring the climate trends and disaster proneness of the area.