Page 47 - Fire Insurance Ebook IC 57

The Insurance Times

Add on covers in Fire Insurance

Fire policies can be extended to cover some extra perils on payment of
additional premium. These are as below:-

Spontaneous combustion

n The fire policy excludes damage caused to the insured property
by "its own fermentation, natural heating or spontaneous
combustion"

n This can be covered under the fire policy as an add-on peril on
payment of additional premium. An endorsement is attached to
the policy giving the effect of additional coverage.

n The additional cover provided is only in respect of fire damage
only, as a result of spontaneous combustion.

Earthquake

Earthquake can be covered under the policy on payment of extra
premium.

Special conditions for earthquake extension:

n Coverage applies to both concussion or shock damage and fire
damage.

n Coverage also applies to flood or overflow of the sea, lakes,
reservoirs and rivers caused by earthquake but not if Storm,
Tempest, Flood and inundation perils are deleted from the fire
policy.

n All the conditions of the fire policy apply to this extension.
n Each and every claim is subject to a deductible of 5% of the net

claim amount.

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