Fire & Special Perils Insurance
Fire with its associated perils like lighting, storm and earthquake is probably the most common hazard known. It can cause devastating damage to fixed assets like warehouses, office blocks, factories, plant and machinery, stocks of both raw materials and finished products, residential properties, grain fields and many other valuable assets.
The Corporation provides a number of insurance contracts to cater for specific situations within the umbrella of Fire Insurance. The usual ones are briefly described in the following subheadings.
Standard Fire Insurance
This policy covers buildings (other than residential properties) such as office blocks, warehouses, factories and shops. It also covers stocks of materials in trade (raw material, materials process and finished goods), machinery , plant crops and fixtures and fittings. The basic perils covered against are fire lighting and explosion. For a nominal additional premium, perils such as storm, wind, hail, impact by vehicles or animals, malicious damage, riot and strike may also be covered.
Buildings Combined Insurance
This policy covers:
- (1) Loss or damage to buildings, including all out –standing, sporting and recreational structures, landlord’s fixtures and fittings, gates and fences.
- (2) Accidental damage to the property of the insured including service connections like water, sewerage, electricity and telephone.
- (3) Loss of rent up to specified limits, following damage to the property rendering it untenantable.
- (4) Liability to third parties (injuries and property damage).
- (5) Burglary
Office Contents Insurance
This policy covers:
- (1) Loss of or damage to furniture, office equipment and all other contents.
- (2) Loss of rent.
- (3) Loss of or damage to documents.
The perils covered against are the same as in fire insurance but include theft and accidental breakage of mirrors, glass etc.
Business Interruption/Loss of Profits Insurance
The destruction caused by fire may bring about a stoppage of production leading to a drain of resources due to continued payment of overheads like salary, rent, etc. The resultant losses are covered by this policy. The premium is paid on gross profit insured. Standing charges which are not proportionate to level of production are covered and premium will vary according to selection of indemnity period. This cover can be given only if there is a concurrent fire policy covering material damage.
This insurance covers loss or damage to buildings for private residence(s) including all private garages, outbuildings, tennis courts, boreholes (including pumps and motors), walls, gates, fixtures and fittings, utility lines, etc. The perils covered are fire, lighting, earthquake, storm, wind, floor, water, hail, bursting or overflowing of water tanks and pipes, housebreaking and impact with vehicles, animals and falling trees. Additionally, the policy covers loss of rent, accidental damage to glass and sanitary ware, public supply or mains connections, and property owners liability to third parties.
