Fire Insurance

Fire Insurance is a property insurance and it covers the material damage of the property insured. Insurers will compensate or indemnify the Insured for the repair costs or reinstatement costs if this is insured on a Reinstatement value basis (subject to the adequacy of the Sum Insured) of the property that has sustained damage by an insured peril.

It is therefore important for all owners of houses, shops, factories, machinery, stock etc to be covered by fire insurance, which is the simplest form of coverage offered to property owners.

A standard Fire policy covers loss and / or damage by:

i)Fire

ii)Lightning

iii)Explosion (due to domestic boiler or of gas for domestic purpose)

iv)Damage by water or other extinguishing agents used to put out the fire

v)Damage resulting from gaining access to a fire

vi)Smoke damage caused by fire


Principal Exclusions

Perils as specified (these perils can be granted subject to payment of additional premium):

A.Loss by theft during or after the occurrence of a fire
B.Arson by the Insured
C.Collapse of buildings
D.Subterranean Fire
E.War & Civil Commotion
F.Radioactive contamination
G.All forms of indirect (consequential) loss are excluded.

However, rental can be included if specifically insured.

Additional Cover

Subject to the Insured’s agreement and payment of additional premium, the basic policy can be extended to cover the following special perils: -

Additional Premium

Aircraft Damage 0.005%
Earthquake & Volcanic Eruption 0.010%
Storm, Tempest 0.015%
Flood 0.086%

Explosion
-Industrial without boilers 0.006%
-Industrial with boilers 0.008%
-Non-industrial without boilers 0.005%
-Non-industrial with boilers 0.008%

Impact Damage
- Excluding insured’s own vehicle 0.004%
- Including insured’s own vehicle 0.004%

Bursting & overflowing of water tanks: -

-Building exceeding 5 stories (including Mezzanine)0.006%
-Others 0.005%

Electrical Installation Clause B 0.056%
Bush or Lallang Fire 0.005%
Subsidence & Land Slip 0.081%
Spontaneous Combustion – By fire only 0.081%
Spontaneous Combustion – Full cover 0.0161%


Riot, Strike & Malicious Damage: -

-Residential Properties 0.010%
-Other than Residential Properties 0.014%
-Damage by Falling Trees or Branches and 0.010%
-Full Theft – Householder Policies only 0.250%

Sprinkler Leakage

-Buildings 0.005%
-Contents 0.025%

Spray Painting

-Subject to Spray Painting - 25% loading Warranty 24
-Without Spray Painting - 50% loading Warranty 24
-Smoke Damage 10% of Basic Fire

Sum Insured

Building and / or plant and machinery

Indemnity under a standard Fire Policy is on the market value at the time of the fire. It is also permissible to insure on reinstatement value basis whereby, the proposer must declare the reconstruction value or replacement value of the building and/or machinery.