Chapter 4 - Property Insurance

Question 1

who issued recommended wordings for fire and specified perils called the ‘standard fire and specified perils policy’?

Answer 1

the association of british insurers (ABI)

Question 2

what does ‘damage’ mean in regards to property?

Answer 2

loss or destruction of or damage to insured property

Question 3

what is standard fire cover made up of?

Answer 3

fire, lightning and explosion

Question 4

what does aircraft cover include for property?

Answer 4

damage caused by the crashing of an aircraft or aerial device it also includes damage by articles dropped from aircraft

Question 4

what does fire damage to property exclude?

Answer 4

1. explosion resulting from fire
2. subterranean fire
3. any process involving the application of heat

Question 5

what damage caused by lightning is included?

Answer 5

all damage caused is covered

Question 6

what excess is always applied to malicious damage?

Answer 6

at least £250

Question 7

what does storm mean?

Answer 7

violent disturbance of the atmosphere with strong winds and usually rain or snow

Question 8

what is the minimum excess applied for storm cover?

Answer 8

£100 but very often higher

Question 8

what does the special peril of storm exclude?

Answer 8

1. escape of water from normal confines
2. damage caused by lightning, frost, subsidence, ground heave or landslip
3. damage to moveable property

Question 9

what does the special peril of escape of water exclude?

Answer 9

water or leakage from any automatic sprinkler installations and damage to any building not in use

Question 10

what is flood cover only granted with?

Answer 10

storm cover

Question 10

what does sprinkler leakage exclude?

Answer 10

damage caused by freezing of pipes

Question 11

what are some standard market exclusions?

Answer 11

1. war risks
2. terrorism
3. marine policies
4. pollution or contamination

Question 12

what does the theft act 1968 state?

Answer 12

that a person is guilty of theft if they ‘dishonestly appropriate
property belonging to another with the intention of permanently depriving the other of it’

Question 13

is there a standard market wording for theft?

Answer 13

no

Question 14

what does a typical wording for theft look like?

Answer 14

theft involving entry to or exit from the premises by forcible and violent means

Question 15

what condition applies to theft policies?

Answer 15

condition of average

Question 16

what are optional extensions in regards to theft?

Answer 16

1. breakage of glass
2. replacement of locks

Question 17

what is breakage of glass cover?

Answer 17

breakage of glass during theft or attempted theft but only if glass is not insured under a specific glass policy

Question 18

what does replacement of locks cover include?

Answer 18

cover provided for the costs incurred in replacing locks following theft of keys

Question 19

what does a glass policy cover as standard?

Answer 19

destruction or damage to all fixed glass

Question 20

what basis is a glass policy usually on?

Answer 20

all risks basis - scratching and chipping is usually excluded

Question 21

does average apply to money?

Answer 21

no the sum is chosen beforehand