What is Fire and Perils Insurance?

The basic fire and perils insurance covers loss or damage to property caused by;

• • Fire: damage arising out of actual burning of the property insured
  • Lightening: Lightening damage is covered in full whether there is an actual fire or not
  • Explosion: limited cover is provided eg of boilers and pressure vessels, of gas equipment being used for domestic purposes.

This insurance covers assets such as buildings, plants, and machinery, stock insurance, office equipment, furniture, fixtures, and fittings.

Special/ Allied Perils Covered Include

• • Impact with aerial objects like Aircraft impact & Explosions
  • Riot and Civil Commotion
  • Malicious Damage – excluding theft
  • Earthquake
  • Storm & tempest
  • Floods
  • Burst Pipes
  • Subsidence cover – land movement
  • Subterranean fire – underground fire
  • Spontaneous Combustion to the property such as dry grass, hay cooking oil, etc.

Extensions Available to the Fire Policy

• • Architects, Surveyors & Consulting Engineers fees – included within a building or Machinery Sum Insured
  • Public Authorities Clause – to cater for increased costs to satisfy the requirements of local by-laws
  • Removal of Debris – to cover the costs of removing debris following a fire
  • All Other Contents Clause – to cover property in the building not specifically insured with a specified limit
  • Electrical Clause – that excludes costs of repairing electrical items causing a fire but covers the damage of the fire if it spreads to other properties
  • Rent – rental value payable or receivable can be  insured as a separate item
  • Temporary Removal – covers property while removed from the building for cleaning, renovation repair, etc.

Exclusions

• • Spontaneous combustion
  • Nuclear explosion
  • Political risks exclusions –this cover is can be purchased as an extra benefit
  • Damage to money, stamps, patterns, etc.

What is not covered?

• • Items like precious stones, curios or works of art, manuscripts, plans, drawings, securities, obligations or documents of any kind, stamps, coins or paper money, cheques, books of accounts or other business books, computer systems records, explosives, manuscripts, etc. unless specifically declared in the policy.
  • Damaged cold storage stocks due to change of temperature.
  • Loss/damage/ destruction of any electrical and/or electronic machine, apparatus, fixture, or fitting arising from overrunning, excessive pressure, short-circuiting, arcing, self-heating, or leakage of electricity.
  • Loss/damage/destruction of Boilers, Economizers or other Vessels, machinery or apparatus which generates steam.

Burglary or Theft Insurance

• • Burglary or theft insurance covers loss or damage of insured property because of theft accompanied by visible, forcible, and violent entry into, or exit out of the insured premises.
  • The policy extends to cover damage to the doors, windows, walls, and roof by intruders in their attempt to gain entry and exit. As well as damage to the contents in the event of an attempted breaking to the premises.

Exclusions under Burglary Insurance

• • Where any member of the Insured’s household or any director, principal, or employee of the Insured is concerned as principal or as an accessory.
  • Resulting from any act committed by any person lawfully on the premises
  • Loss caused by fire or explosion
  • Resulting from a safe or strong room being opened by a key left on the premises

Exclusions under Burglary Insurance

• • Arising whilst the premises are in the occupation of a sub-tenant
  • Directly or indirectly caused by war, riot, or kindred risks
  • Deeds, bonds, bills of exchange, promissory notes, cash, banknotes, cheques e.t.c,
  • Livestock or motor vehicles and accessories.
  • Stocks and sale records – The insured is required under the policy to keep accurate and up to date records of sales and stocks pertaining to the business

Business Interruption Insurance

• • This policy provides cover for loss of profits caused by reduction or interruption of production due to damage caused by fire and allied perils to the insured’s premises.
  • Business Interruption Insurance is taken together with fire insurance to ensure both the business and the assets/materials are covered.
  • It covers loss of gross profits, wages that are paid while production is interrupted and auditors fees incurred in the preparation of the claim.