Outline three properties covered in fire insurance. Enumerate six special perils covered in fire insurance. Explain three covers provided under standard fir...

Answer Details

Three properties covered in fire insurance

1. Buildings, such as dwelling houses, factories, offices and warehouses.
2. Contents of buildings, such as furniture, fittings, machinery and household goods.
3. Stock in trade, such as raw materials, work in progress and finished goods held for sale.

Six special perils covered in fire insurance

These are perils that can be added to the standard fire policy on payment of extra premium:

1. Storm and tempest.
2. Flood.
3. Earthquake.
4. Riot, strike and civil commotion.
5. Explosion (other than boiler pressure).
6. Bursting or overflowing of water tanks, pipes and apparatus.
7. Aircraft and articles dropping from them.
8. Impact by road vehicles or animals.

Three covers provided under a standard fire policy

1. Fire: Loss or damage caused by actual ignition and burning, whether the property is destroyed or damaged by heat, flame or the water used in putting out the fire.
2. Lightning: Damage caused by a lightning strike, whether or not it results in an actual fire, for example a building or electrical equipment shattered by lightning.
3. Explosion: Damage caused by the explosion of gas or boilers used for domestic purposes, and explosion in premises not being part of any industrial process.