Chapter 4 - Property Insurance Flashcards
who issued recommended wordings for fire and specified perils called the ‘standard fire and specified perils policy’?
the association of british insurers (ABI)
what does ‘damage’ mean in regards to property?
loss or destruction of or damage to insured property
what is standard fire cover made up of?
fire, lightning and explosion
what does aircraft cover include for property?
damage caused by the crashing of an aircraft or aerial device it also includes damage by articles dropped from aircraft
what does fire damage to property exclude?
- explosion resulting from fire
- subterranean fire
- any process involving the application of heat
what damage caused by lightning is included?
all damage caused is covered
what excess is always applied to malicious damage?
at least £250
what does storm mean?
violent disturbance of the atmosphere with strong winds and usually rain or snow
what is the minimum excess applied for storm cover?
£100 but very often higher
what does the special peril of storm exclude?
- escape of water from normal confines
- damage caused by lightning, frost, subsidence, ground heave or landslip
- damage to moveable property
what does the special peril of escape of water exclude?
water or leakage from any automatic sprinkler installations and damage to any building not in use
what is flood cover only granted with?
storm cover
what does sprinkler leakage exclude?
damage caused by freezing of pipes
what are some standard market exclusions?
- war risks
- terrorism
- marine policies
- pollution or contamination
what does the theft act 1968 state?
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’
is there a standard market wording for theft?
no
what does a typical wording for theft look like?
theft involving entry to or exit from the premises by forcible and violent means
what condition applies to theft policies?
condition of average
what are optional extensions in regards to theft?
- breakage of glass
- replacement of locks
what is breakage of glass cover?
breakage of glass during theft or attempted theft but only if glass is not insured under a specific glass policy
what does replacement of locks cover include?
cover provided for the costs incurred in replacing locks following theft of keys
what does a glass policy cover as standard?
destruction or damage to all fixed glass
what basis is a glass policy usually on?
all risks basis - scratching and chipping is usually excluded
does average apply to money?
no the sum is chosen beforehand
