Page 21 - Policy Wording - Hollard Business Binder (2020-08-26)

1.1
1.2
1.3
Subsidence:
1.1.1 This usually occurs in dolomite areas. Dolomite is a very porous type of rock formation and is susceptible to cracks. Flowing water seeps through the crack(s), gradually eroding the soil underneath the (dolomite) rock formation. This can cause the rock to collapse and could swallow an entire building or cause extensive damage.
1.1.2 Water management is one of the most important issues in dolomite areas and care must be taken that a water management plan is in place. Do not insure property without this plan.
Landslip:
1.2.1 Clay soil absorbs water and expands, shrinking as it gets dryer.
1.2.2 This soil type can absorb enormous amounts of water.
1.2.3 With enough weight and at the right angle it usually starts slipping, hence the name landslip.
1.2.4 Be mindful of sloping areas where clay-like soil is evident.
S&L cover is available on the following sections:
Subsidence and Landslip
1.
UNDERSTAND THE RISK
SUBSIDENCE AND LANDSLIP
Policy Section
Automatically included
Optional cover
Fire
Building Combined Office Contents
Limited cover Limited cover Limited cover
Extended cover Extended cover Extended cover
2.
3.
1.4 Dolomite areas can be identified from the Area Classification and Dolomite indicator section.
1.5 The underground water from mines are a different issue that requires attention and certain areas are identified as being potentially dangerous zones.
1.6 Some areas are close to dolomite areas and as such will be referred to the Department of Geoscience.
1.7 Contents could also be affected by S&L. Do not apply only to the structure.
UNDERWRITE THE RISK
2.1 The difference between limited and extended cover is that extended cover includes floor slabs, driveways, pools, etc. for which an additional premium is required.
2.2 The limited basis wording (as used by the Banks) is now included at no additional premium.
2.3 If the extended wording is required it must be referred to Hollard, together with the policy schedule, Geo Technical report, provided by a qualified engineer, and claims history, for acceptance and rating.
RATING
Please refer to the relevant section for rating.
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Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020