Mataracy
VIP Contributor
Fire is a peril that leads to destruction of life and property. In some country, we often hear of fire destroying public buildings leading to economic and financial losses.
The items that are exposed to risk under fire includes:
i. Building
ii.Contents of building including plants, machinery and stock.
The cover provided under a standard fire policy includes lightening, fire and explosion. But because of this restriction in cover compared to the wide range of perils associated with fire.
This is why an insured can have extension in cover to enable the fire policy cover the following perils.
-Malicious damage etc
The above additional cover/ extension is what us called special perils which are additionals to the cover provided under a standard fire policy.
For the purpose of fire policy, fire is defined as the actual ignition of something which ought not to be on fire.
For example, in an attempt to fry an egg, one would need to put the frying-pan on fire,put oil and then the egg. Without all these,you cannot get a fried egg. If in the process there is ignition leading to fire and destroying the building, contents and other household items. The frying-pan, oil and egg ought to be on fire but the destruction of the building contents and household goods and personal effects are not suppose to be on fire will be compensated for by the fire insurance policy.
The items that are exposed to risk under fire includes:
i. Building
ii.Contents of building including plants, machinery and stock.
The cover provided under a standard fire policy includes lightening, fire and explosion. But because of this restriction in cover compared to the wide range of perils associated with fire.
This is why an insured can have extension in cover to enable the fire policy cover the following perils.
- Storm,tempest and flood
- Sprinkler leakage
- Earthquake
-Malicious damage etc
The above additional cover/ extension is what us called special perils which are additionals to the cover provided under a standard fire policy.
For the purpose of fire policy, fire is defined as the actual ignition of something which ought not to be on fire.
For example, in an attempt to fry an egg, one would need to put the frying-pan on fire,put oil and then the egg. Without all these,you cannot get a fried egg. If in the process there is ignition leading to fire and destroying the building, contents and other household items. The frying-pan, oil and egg ought to be on fire but the destruction of the building contents and household goods and personal effects are not suppose to be on fire will be compensated for by the fire insurance policy.