Fire Insurance

Kind of insurance which insures primarily against losses or damages proximately caused by the perils of Fire and Lightning as well as other allied perils customarily included by way of extension, subject to the payment of additional premium.

Factors in Evaluating, Accepting and Formulating Terms and Conditions of Fire Insurance

Physical Hazard

refers to the physical outlook or features of the subject matter of insurance which may either be buildings and contents.

Some Physical Hazard which should be considered in Fire Insurance are as Follows:

1. Construction
2. Occupancy
3. Location
4. Boundaries/Exposures
5. Susceptibility

Moral Hazard

refers to the intention or the good faith of the proposer.

In Fire Insurance, Ordinarily, the Following Maybe Insured:

1. Buildings
2. Contents:
a) Stocks in trade
b) Machineries and equipments including spare parts, accessories and tools.
c) Business or household furniture’s, fixtures and fittings.
3. Business Interruption or Consequential Loss.

Perils Covered

1. Fire
2. Lightning
3. Domestic Gas Explosion, provided :
a) Gas is used for illuminating or domestic purposes
b) Explosion occurs in a building
c) Gas is not generator or not forming part of any gas works.

Allied Perils

Perils which are excluded or not covered under the Standard Fire Insurance Policy but are normally and customarily insured or included upon request subject to payment of corresponding premium.

Types of Allied Perils

1. Earthquake (Earthquake Fire & Earthquake Shock)

Cover against loss or damage due to fire in consequence of earthquake or against loss or damage caused by shock.

2. Typhoon

Loss or damage caused by typhoon. Storm must be recorded and confirmed by the weather bureau or PAGASA.

3. Flood

Entry of water in the insured premises due to flooding of land not usually covered by water by reason of:
a) Extra ordinary high tide
b) Flooding following typhoon, cyclone and/or windstorm.

a) Caused by overflowing, bursting or leakage of water tanks, pipes and other water apparatus.
b) Caused by overflowing of gutters, bursting or overflowing of municipal or other public water supply mains.
c) Caused by leakage from basements.
d) Cased by high water unless by floods as defines.

4. Extended Cover

Includes perils of explosion, falling aircraft or anything falling therefrom, vehicle impact and smoke.