The most basic property insurance, covering building, facility and stock loss from fire, explosion and lightning. A special building is compulsory under the Fire Insurance Act.
N2N Insurance Brokerage does not represent any single insurer — it independently represents the client as an FSS-registered broker (Reg. No. 2026-012201). We compare the wordings, rates and service of AIG · Chubb · DB · Hyundai · KB · Meritz to propose the cover and price best suited to your risk. Each insurer's full wording is provided at application and binding.
The most basic property insurance, covering building, facility and stock loss from fire, explosion and lightning. A special building is compulsory under the Fire Insurance Act.
Designed to meet the statutory requirement including the bodily-injury liability endorsement.
A reasonable rate for small sites, shops and small factories.
Add only the cover you need — storm-flood, theft, breakage, liability — by endorsement.
Liability cover for third-party bodily/property harm from a fire.
11-storey+ buildings, accommodation, academies, hospitals, retail, performance halls, multi-use facilities.
SMEs with fire risk but no large plant.
Retail, office and factory buildings leased to tenants.
| Policy period | 1 year (renewable) |
|---|---|
| Payment | Lump sum (annual) or instalments |
| Insurers | DB · KB · Meritz · Hyundai |
| Turnaround | 2–3 business days |
| Channel | Individual consultation with our broker (010-5755-6465) |
If the insured event has already occurred at the time the contract is made, the contract is void. However, where the contract is void due to the company's intent or negligence, or where the company knew or could have known of the nullity before acceptance yet did not refund the premium, the company refunds the premium with interest at the policy-loan rate published by the Korea Insurance Development Institute, compounded annually, for the period from the day after payment to the day of refund.
The specific losses not covered (exclusions) are set out in each insurer's policy wording and product description; on this page, see the “Cover” tab(or the “Losses not covered” section) for the main exclusions. For other cover-specific grounds on which claims are not paid, please refer to the policy wording.
The company provides cover, in accordance with the policy, from the time it accepts the application and receives the first premium. Where the company accepts the application after receiving the first premium with it, cover also begins from the time the first premium was received.
The application must be completed by the policyholder, and the policyholder and the insured must sign it by hand. Failure to sign by hand may result in disadvantages regarding the validity of the contract. On an internet cyber-mall, an electronic signature may be used instead.
The policyholder has the right to be given and have explained the information needed about the product they wish to buy.
The insurer and N2N Insurance Brokerage must explain the important matters of the product to ordinary financial consumers.
When applying, the policyholder, the insured or their agent must disclose truthfully the facts they know regarding the questions in the application (including the questionnaire). Otherwise the claim may be declined or the contract cancelled. Where insurance is taken out by telephone or other means of communication, the duty is performed by answering the seller's questions, which are recorded, without a separate written questionnaire, so answers must be given with particular care.
If, after the contract is made, any of the following arises in respect of the subject-matter insured, the policyholder or the insured must notify the company in writing without delay and obtain endorsement on the policy.
The surrender value is the amount paid if the contract is cancelled early. Unlike bank savings, insurance combines risk protection and savings: part of the premium is paid out as claims to other policyholders who suffer accidents, and part covers the insurer's operating expenses, so the surrender value on early cancellation may be less than the premiums paid, or nil.
Under Article 59-4(1) of the Income Tax Act (special tax credit), for protection-type insurance taken out by an employee only, a tax credit of 12% of the premium paid (capped at KRW 1 million per year) is available. Tax matters may change with amendment or repeal of the relevant tax law.
Except as provided by law, the insurer and N2N Insurance Brokerage do not collect, use, inspect or provide personal data related to this contract — for its conclusion, maintenance and claim payment — without the consent of the policyholder, the insured or the beneficiary. However, for those purposes the insurer may, with the consent of the policyholder and the insured and in accordance with law, provide personal data to other insurers and insurance-related bodies.
The above is a summary and excerpt of the policy wording; for grounds on which claims are not paid and other details, please refer to the policy wording and product description.
Statutory duty + voluntary area — five facility types
Under the Fire Insurance Act — apartment of 16 storeys+, building of 11 storeys+, total floor area 3,000㎡+. The manager has a duty.
General office/retail buildings. Voluntary, but a lease often states an enrolment duty.
Manufacturing/logistics facilities. A large single-accident loss area; a stock + machinery combination is usual.
Restaurants, karaoke, PC rooms. Combining this fire insurance (assets) + multi-use fire liability (liability) is essential.
Special buildings under the Fire-Fighting System Act — review a combination with a separate comprehensive policy.
A fire believed to be from a night-time electrical fault broke out at a small manufacturing factory, damaging part of the building plus machinery and stock. Under the fire insurance the building, machinery and stock were reviewed, and the lost turnover from business interruption was reviewed separately under a BI endorsement. But the inundation that some neighbouring factory units suffered during firefighting fell into a separate wording area as adjacent-damage liability. And as the building's replacement-value basis at enrolment was five years old, it did not fully cover the actual rebuild cost — a case showing that re-assessing the cover value at each renewal is key.
Source: (General industry example)
The wording and structure points decision-makers most often overlook
The Fire Insurance Act compulsory limit is set differentiated by facility type (building KRW 100m–5bn etc.), but often cannot cover the combined rebuild + machinery + stock loss of a single fire. A compulsory limit + excess-limit endorsement, or a separate property all-risks policy, is the recommended supplement.
This fire insurance covers the facility's own fire loss (assets), while multi-use-establishment fire liability covers third-party (customer, neighbour) compensation from a fire (liability) — a separate wording. A multi-use establishment must combine the two, and understanding the area distinction in advance smooths post-accident response.
Base fire insurance usually excludes natural disasters such as storm-flood and earthquake; a separate endorsement or a policy-type storm-flood/earthquake policy is needed. A facility with high natural-disaster exposure (coast, riverside, high ground) must review a combined design.
Fire insurance grades the building 1–4 on the material of the main structural parts (column/beam/floor, roof, external wall), the starting point for acceptance and rate. The same-value building is assessed differently by grade, so knowing your building's grade in advance — and holding fire-resistant-construction certificates if built that way — helps a favourable grade.
The questions decision-makers ask most when considering fire insurance
Under the Act on Disaster Compensation and Insurance for Fire (the Fire Insurance Act), the manager of a special building (apartment of 16 storeys+, a building of 11 storeys+, total floor area 3,000㎡+, etc.) has a duty to take out fire insurance. Fire insurance for an ordinary site is voluntary, but certain sectors — multi-use establishments, schools, medical institutions — combine a duty under the Fire-Fighting System Act.
Direct loss from building/facility fire, lightning and explosion is the base area, and endorsements can combine storm-flood (typhoon, flood, inundation), earthquake, theft, business-interruption (BI) loss and adjacent-unit damage liability. Exclusions and limits differ by wording.
The Fire Insurance Act compulsory limit for a special building (differentiated by facility type — building KRW 100m–5bn etc.) often cannot cover the full actual loss of a single fire. A compulsory limit + excess-limit endorsement, or a separate property all-risks policy, is the usual supplement.
This fire insurance covers the facility's own fire loss (assets), while multi-use-establishment fire liability covers compensation to third parties (customers, neighbours) from a fire (liability) — a separate wording. A multi-use establishment (restaurant, karaoke, PC room) must combine the two, and where a building mixes residential and business the area distinction is key.
Base fire insurance usually excludes natural disasters such as storm-flood and earthquake; a separate endorsement or a policy-type storm-flood/earthquake policy is needed. A facility with high natural-disaster exposure (coast, riverside, high ground) must review a combined design.
The limit is designed on the building replacement value (current new-build cost), the value of furnishings, fixtures and stock, the business-interruption risk and the potential for adjacent damage to spread. Cover value rises over time, so re-assessment at each renewal is recommended.
Fire insurance grades the building from 1 to 4 on the material of the main structural parts (column/beam/floor, roof, external wall), which is the starting point for acceptance and rate assessment. If all three parts are fire-resistant it is grade 1; the more combustible (tent, combustible material), the closer to grade 4, seen as a higher fire-risk structure.
The insurer assesses it on the building structure (concrete, timber, steel), area, use (residential, office, manufacturing, warehouse), fire-risk grade (including surroundings), fire-fighting facilities and past incident history. The exact premium and acceptance are confirmed after underwriting by insurers such as AIG, Chubb, DB, KB, Meritz and Hyundai.
