Guide to Fire Insurance
Standard fire insurance includes insurance against loss by fire and lightning. (Philippine Insurance Code). Extension of the coverage may be done to include losses against earthquakes, tornadoes, windstorm, and other allied risks. Information here are just basic guidelines. Please refer to your policy for exact coverages and liabilities.
Content
Kinds of Fire
Characteristics of Fire Covered
Losses Directly Caused by Fire
Lightning
Period of cover
Standard Fire Insurance Policy
Exclusions
Allied Perils
Suspension of Coverage
Procedures for Making Claims
Kinds of Fire
Fire is classified as friendly or hostile. Friendly fire is fire that is deliberate and remains within the limits intended for it. Hostile fire is fire that goes out of control and beyond the limits intended for it.
Characteristics of Fire Covered
To be covered by fire insurance, the following must be present:
Fire is the proximate cause.
Fire is hostile.
Accidental in origin.
Flame or ignition of sustaining velocity.
Losses Directly Caused By Fire
Falling walls.
Damage due to firefighters' effort to extinguish the fire.
Damage or loss of property being removed from a building.
Damage to property due to weather exposure during and after the fire.
Smoke and heat.
Note that if an item is stolen while still inside a burning property, the insurance company is not liable for the item stolen. This is because the peril is theft, which is not covered under the standard fire policy.
But, if the item is removed from the burning building, then stolen, the loss will be
covered.
Lightning
A discharge of atmospheric electricity. For loss to be covered by the insurance policy, item damaged by lightning must also burn as a result of lightning.
For example, lightning strikes the home antennae, and the surge of electricity suddenly causes the TV to stop working. However, there is no fire as a result. The TV loss is not covered.
But if lightning strikes, and the TV burst into flames, the TV loss is covered.
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