Page 25 - Commercial - Underwriting Mandates & Guidelines Binder

Thatch/Timber/Non-standard Construction
2.5.2 Caution should be exercised if approached to provide cover for these properties as many properties have been lost to raging fires over the years.
2.5.3 Therefore, all risks situated in St Francis Bay must be referred to Hollard for approval prior to quoting or providing renewal terms. Referral to include all information as noted under point 1.1 above.
2.6 Solar power systems
Cover for solar power systems fixed to thatch/timber/non-standard construction buildings must be excluded.
3. RATING
3.1 In the event of a fire the structure (incl. contents) will most likely be a total loss. One should bear in mind that accepting thatch business is not our preference as it is not homogeneous to our book and therefore, there are low acceptance limits for this type of business.
3.2 It is suggested that a quote be obtained from reinsurers prior to quoting on the risk if facultative support is required. This is due to reinsurers having terms and conditions that we may have to also apply to the risk. Refer to point 2.4 under the Fire section for loadings to be applied to the base rate.
4. WARRANTIES AND ENDORSEMENTS
4.1 Timber construction warranty
"Hollard will not be liable for loss or damage unless:
1. All timber walls and roofs are protected with a fire retardent.
2. The buildings are protected against termites and insects.
3. The grounds up to 25m (twenty five metres) on all sides of the building, or to the boundary perimeter, whichever is closer, must be kept clear of bush, grass, etc. This does not apply to cultivated and maintained lawns and gardens.
4. Firebreaks between buildings of 10m (ten metres) apart must be maintained.
5. All fire extinguishers and hose reels must be maintained and kept in working order."
4.2 Thatch warranty
The following warranty should apply without exception:
"It is a condition precedent to liability and it is warranted that the thatch structure comply with the following requirements and conditions:
1. thatched areas must be maintained on a regular basis;
2. combing and compacting of thatched areas to maintain structure and integrity must take place;
3. damage by wild animals/birds or due to any other cause must be repaired immediately;
4. all chimneys must be cleaned once a year and maintained during the operational period and kept in good working order;
5. maintenance logs should be retained for inspection;
6. chimneys must be equipped with spark arrestors."
4.3 Surge and fire protection warranty
"It is hereby warranted that:
1. Clients may install any SANS approved surge protection device in the main electrical distribution board or sub distribution board feeding the equipment that meets the following requirements:
1.1 40 kA (8/20) Class 2,
1.2 wired in terms of SANS 10142-1 Connection Type 2,
1.3 with mechanical fault indication,
Commercial Underwriting Mandates and Guidelines – Binder – Version 4 2022 23