Fire Risk Extension Clause

Fire Risk Extension Clause (also known as Storage Fire Risk Extension Clause) is an additional risk clause in marine cargo transportation insurance. Its core meaning is: when the insured cargo arrives at the destination, if the consignee fails to take delivery in time or cannot take delivery, and the cargo needs to be stored in a dock warehouse or customs warehouse, the insurer may extend the original policy's insurance liability to cover losses caused by fire during the period of storage in the warehouse. It is commonly used when importers delay taking delivery due to incomplete documents, unpaid tariffs, or market reasons, causing goods to remain in port warehouses for extended periods. Notes: This clause usually requires special additional coverage at the time of insurance and payment of extra premiums; the insurance period generally starts after the cargo is unloaded from the ocean vessel and ends when the consignee takes delivery or a specified period (e.g., 30 days, 60 days) expires; if the cargo is damaged for non-fire reasons (such as theft or water damage), it is not covered. Difference from other terms: It differs from the 'Warehouse to Warehouse Clause' (W/W Clause), which covers the entire transportation from the shipper's warehouse to the consignee's warehouse, whereas the Fire Risk Extension Clause only covers fire risk during storage at the destination port warehouse; it also differs from 'Theft, Pilferage and Non-Delivery' (TPND), which covers theft and non-delivery of entire packages. Foreign trade practitioners should note: this clause is an additional risk that cannot be insured separately and must be stated in the policy.