Page 22 - Policy Wording - Hollard Business Binder (2020-08-26)

Thatch/Timber/Non-standard Construction
1. GENERAL
THATCH/TIMBER/NON-STANDARD CONSTRUCTION
1.1 In view of the high fire hazard, the following must be obtained:
1.1.1 detailed underwriting information;
1.1.2 recent survey report including details of outstanding implementation of risk requirements;
1.1.3 three year loss history;
1.1.4 details of surrounding areas as this may impact spread of fire.
1.2 Maximum risk accumulation is R5 000 000 (five 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.
2. 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:
2.1.1.1 the thatch structure is attached to or is situated less than 5m (five metres) from the main building; or
2.1.1.2 the thatch structure encompasses more than 10% of the standard structure’s radius.
2.1.3 A thatch questionnaire must be completed for each and every thatch risk.
2.1.4 It is suggested that a fire extinguisher be placed inside and outside the thatch structure, but always within easy reach to fight fires.
2.2 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 asbestos is a declined risk from a breakage and liability perspective. Asbestos 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.
2.3 If automatic sprinkler systems are fitted inside the roof this must be accompanied by an ASIB certificate.
2.4 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.
2.5 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.
2.5.2 Caution should be exercised if approached to provide cover for these properties as many properties have been lost to raging fires over the years.
Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020 21