COMBINE FIRE & SPECIAL PERILS INSURANCE BURGLARY / HOUSEBREAKING INSURANCE
We recommend combine Fire/Special Perils Insurance and Burglary/Housebreaking Insurance policy which we trust you will find useful in providing a suitable insurance coverage for you Building/office and other assets.
Section 1: FIRE & SPECIAL PERILS INSURANCE.
This covers the building and office equipment against loss or damage caused by fire and/ or lightning. The policy also covers the under mentioned perils:-
1. Explosion
2. Article drop Therein/Thereon From Aircraft
3. Riot, strikes and civil Commotion, insurrection
4. Malicious damage
5. Impact excluding impact by road Vehicle
6. Flood
7. Storm
8. Earthquake or Subterranean Fire
9. Tornado
10. Burst Pipe Apparatus
11. Burglary following Fire incident
Section ii. BURGLARY.
This cover loss or damage to the office content and the Generator following violent and forcible entry into the building.
We would suggest a first Loss sum Insured of N500,000.00 for the Generator i.e. the maximum claim that could occur at any point in time. This will result to reduction in the premium rate.
SUM INSURED
Sun Insured is generally regarded as the value of the property at risk; this is expected to be adequate to represent the full cost of reinstating the building and contents in the event of total destruction without any deduction for depreciation.
We are particularly interested in the adequate sum insured because experience has shown that values increased and cost of reinstating building always exceed the actual value of the buildings destroyed. Therefore, this policy must be on reinstatement basis and the value must be adequate.
AVERAGE CONDITION
All fire policies contain an average clause. This clause is meant to combat under-insurance i.e., low sum insured, the liability of the Insurers in this circumstances is restricted to that proportion of the loss that the sum insured bears to the value of the property at the time of the destruction or damage. The insured is thus made a co-insurer if the property at the time of the fire is not covered for its full value.
This being the case, settlement of any claim under this policy will be in this from:
Sum Insured X Loss
Value at time of loss
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