Page 34 - Commercial - Underwriting Mandates & Guidelines Binder

4.
RATING
4.1
4.2
Fire
M – Medium
H – High
X – Extra High
Escalation
Fire
3.8.3 The property may be at risk from a combination of ignition sources, such as inadequate electrical wiring, large quantities of combustible materials (i.e. sandwich panelling) and equipment malfunctions.
3.8.4 Ammonia leaks could cause an explosion and therefore, the required detection system should be in place.
3.8.5 Good housekeeping and fire controls are critical (a no smoking policy must be strictly adhered to).
3.8.6 Sprinkler heads must be located high enough to avoid accidental contact with forklifts, but with adequate clear space from storage facilities to allow unobstructed operation in the event of a fire.
3.8.7 Forklifts should be refuelled in a separate, well ventilated area away from any combustibles.
3.8.8 Please refer to point 13. under the Survey section for details on sprinkler requirements for the various cold storage constructions.
3.9 Ammonium nitrate
Please refer to Annexure H.
Risk Classification
Area
Min Rate Allowed
Max Discount Allowed
1
2
L – Low
0.185% 0.210%
0.285% 0.325%
0.400% 0.410%
0.495% 0.575%
0.080% 60%
0.125% 55%
0.200% 50%
0.275% 45%
Rate
Rate of escalation
Year one
Year two
Maximum percentage
Applicable to
4.3
4.2.1 This extension provides escalation of the sum insured during the period of insurance. In the event of a claim, the sum insured will be escalated up to the date of such claim calculated pro-rata on the percentage selected and stated in the Schedule of this section.
4.2.2 Year one is to make provision for the increase in replacement cost.
4.2.3 Year two makes provision for further costs if the repairs started in year one have not been completed.
4.2.4 If selected, the amounts generated must be included in the retention calculation.
50% of the standard fire rate
25% of the standard fire rate
25% of the standard fire rate
15% of property sum insured (excluding rent) Buildings (column 1) and plant machinery (column 3)
Shade nets, plastic covers, tunnels or similar growing tunnels
4.3.1 4.3.2
4.3.3 4.3.4
Must be referred to Hollard for sign off before quoting.
Hail force is not the real issue here, but rather accumulation. Hail accumulates and the weight causes the cover to collapse.
It is important to have a drawing/plan to evaluate gradients are sufficient.
Installation must be by a professional and not by the owner and in accordance with manufacturer's specifications.
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Commercial Underwriting Mandates and Guidelines – Binder – Version 4 2022