fire

Fire, with it’s associated perils like lighting, storm and earthquake, is probably the most common hazard known.

It can cause devastating damage to fixed assets like warehouses, office blocks, factories, plant and machinery, stocks of both raw material and finished products, residential properties, grain field and many more other valuable assets.

GIB provides a number of insurance contracts to cater for specific situations under the umbrella category of Fire (Property) Insurance.

The usual ones are described in the following subheadings.

1. Standard Fire Insurance

This policy covers buildings (other than residential properties) such as office blocks, warehouse, factories and shops. It also covers stocks of material in trade (raw material, materials in process and finished goods), machinery, plant crops, office contents, fixtures and fittings. The basic perils covered against are:-

•Fire, lightning, and explosion

In addition, GIB, may extend the policy to cover the following perils and these are:-

•Storm, wind, water (floods), hail, snow

•Aircraft and aerial devices

•Impact by animals, trees or vehicles

•Earthquake

•Subsidence and landslip

•Sprinkler leakage

•Malicious damage

The other features that should be read in conjunction with and forming an integral part of the Fire Policy are:-

•General Exclusions, those perils GIB are not covering under the policy.

•General Provisions, like what would be the effect if the insured undervalued the property insured.

•General Conditions, like how the policy can be voidable, where there is misrepresentation of material facts.

•Claims Conditions, like what action should be made by the insured.

2. Business Interruption

Cover offered is for indirect or consequential loss which may result following the insured’s property being destroyed by either fire or special perils.

It is always essential that the proposer decides the indemnity period as this is the period it would take for the insured to get the business premises rebuilt or for the new premises found.

3. Arrangement of Property Damage

Fire insurance may cover the buildings and contents of a risk. Within the buildings, item provision may be made for all the outbuildings and the walls, gates and fences surrounding the property. Included will be items such as the payment of fees to an architect whose services will be required to draw up new plans following damage to the premises by an insured peril and for the cost of removing debris or shoring up a building following damage. Contents may be split into two categories, the machinery, plant and general contents within the premises and Stock.

The word “property” embraces every material thing or physical object to which fortuitous loss or damage may be occasioned and in this context, the legal distinction between real property (that is, immovable property such as and or buildings) and personal property (temporary or movable things as opposed to land) has no relevance.

There is no limit to the variety of property that may be insured although the insurance available or required will differ according to the nature of the property. Thus, while property is subject to the perils of fire and explosion, only movable property would normally be subject to theft or accidental loss.

Who may insure?

In general any persons may insure property or a pecuniary interest if as a result of the destruction and loss of or damage to, such property, right or interest, they will suffer financial loss.