The basic Fire policy provides indemnity against loss or damage to property described, caused by fire, lightning and explosion. However, the policy can also be extended to cover riots, strike, malicious damage, storm, earthquake, impact by vehicles, aircraft and other aerial devices, subterranean fire, spontaneous combustion, explosion of industrial boilers and economizers, flooding, water damage due to bursting or overflowing of water tanks, apparatus, and pipes. This insurance covers assets such as buildings, plant and machinery, stock insurance, furniture fixtures and fittings and office equipment.
a) Theft even if during a fire
b) Loss by self destruction, natural heating, spontaneous combustion, subterranean fire, burning
of property by order of public authority, nuclear material including ionizing radiation’s
or contamination by radioactivity.
c) Earthquake, volcanic eruptions, typhoon, hurricane, tornado, cyclone or other convulsions
of nature or atmospheric disturbance unless-earthquake extension has been granted
e) Riot and Civil Commotion unless the extension has been granted
f) Explosion unless used for illumination or for domestic purposes e.g. cooking
Some situations that generally make a business less acceptable(physical hazards) that one can see include:
a) General disorder(poor housekeeping) of premises
b) Poor state of repairs on premises.
c) Old/Exposed wiring.
d) Naked flame e.g. when fire wood is used for cooking
f) Lack of water supply
g) Poor means of access by fire engines
This unlike physical hazards have to do with the character of the proposed insured e.g. trustworthiness. Such character is evident in:
a) Over-insurance – may result in fraud
b) Premises being used for illegal purposes
c) Gambling tendencies by proposer
d) Proposer having a higher standard of living than his income
e) Excessive drinking/questionable associates