Page 24 - Commercial - Underwriting Mandates & Guidelines Binder

2.
1.1 In view of the high fire hazard, the following must be obtained:
• detailed underwriting information;
• recent survey report including details of outstanding implementation of risk requirements;
• three year loss history;
• details of surrounding areas as this may impact spread of fire.
1.2 Maximum risk accumulation is R8 000 000 (eight million rand) (VAT exclusive). Please refer to your Hollard branch for limits in excess.
1.3 These risks are not within Hollard's risk appetite and should only be written on an accommodation basis or to support existing business.
UNDERWRITING THE RISK
2.1
Thatch:
2.1.1 In some instances a building of standard construction is exposed to the risk of fire because of thatch structures that attach to or are situated in close proximity to the standard construction building.
2.1.2 The entire risk must be rated as thatch if:
• the thatch structure is attached to or is situated less than 5m (five metres) from the main building; or
• the thatch structure encompasses more than 15% of the standard structure’s radius.
2.1.3 It is suggested that a fire extinguisher be placed inside and outside the thatch structure, but always within easy reach to fight fires.
2.1.4 Harvey tile on top of a thatch roof will still be considered a thatch risk.
Non-standard construction:
2.2.1 all construction made of timber, reed, log, wood or asbestos is considered non-standard;
2.2.2 timber and wood must be treated if accepted;
2.2.3 thatch and reed are treated in the same way, lightning detectors are no longer required but measures like fire extinguishers, fire blankets and hydrants should be in place;
2.2.4 whilst asbestos is a declined risk from a breakage and liability perspective, asbestos roofs are accepted as standard construction. Keep in mind that these roofs, although classified as standard construction, become brittle after a few years and a storm/hail damage claim could cause insurers to replace the entire roof with materials of standard construction. Therefore, underwriters should consider this aspect in their rating and deductibles.
Refer to point 7.3 under the Fire section for details on automatic sprinkler systems.
It is important to have a survey on file which will indicate condition, maintenance, age and protection. When a fire starts in/under a thatched structure the probabilities are that the loss will be 100%. It is suggested a survey be obtained for all non-standard structures. Refer to the section on Surveys for survey type and frequency.
St Francis Bay
2.5.1 Is a holiday village in Sarah Baartman District Municipality in the Eastern Cape province where most of the properties consist of thatched roofed homes.
2.2
2.3 2.4
2.5
Thatch/Timber/Non-standard Construction
1.
GENERAL
THATCH/TIMBER/NON-STANDARD CONSTRUCTION
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Commercial Underwriting Mandates and Guidelines – Binder – Version 4 2022