Chapter 4 - Property Insurance

Question 1

What are the three perils covered by the standard fire policy?

Answer 1

• 🔥Fire
• Lightening and
• Restricted explosion

Question 2

What are the four broad headings for special perils?

Answer 2

• Chemical (Perils of a Chemical type)
• Social perils
• Nature (Perils of Nature)
• Miscellaneous Perils

Question 3

‘All risks’ exclusions may be divided into four headings, What are they?

Answer 3

• Absolute exclusions
• Exclusions which relate to an aspect of cover which can sometimes be included in the policy, but only with careful underwriting ( corrosion, terrorism, rust etc)
• Exclusions which relate to an aspect of cover which can be written into the policy ( money, jewellery, glass, landslides etc)
• Exclusions which relate to the property or risks which are more appropriate to another class of insurance/ business and therefore cannot be covered (eg. motor vehicles, livestock, aircraft etc)

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Question 4

How have insurers amended the Theft wording as defined in the Theft Act 1968

Answer 4

Insurers have amended their their Theft wording under their commercial Theft policies to cover ‘theft involving entry to or exit from the premises by forcible and violent means.’

Question 5

What is one optional extension to a standard glass policy?

Answer 5

• damage to shop front content as a result of broken glazing; it
• damage to washbasin and sanitary fittings in hairdresser salons

Question 6

What, in one sentence, is the civet generally provided under a standard money policy?

Answer 6

Money insurance on ‘all risks’ basis, covering loss from any cause, whether it is in transit or on premises, subject to agreed limits.

Question 7

What are two optional extensions to a standard money policy?

Answer 7

• Credit cards and

- Personal accident assault risks (possibly including damage to clothing and personal effects)