Fire Insurance Flashcards
What is a fire insurance?
Fire insurance includes insurance against loss by fire, lightning, windstorm, tornado, or earthquake and other allied risks, when such risks are covered by extension to fire insurance policies or under separate policies.
What is the rule regarding alteration of the thing insured?
An alteration in the use or condition of a thing insured from that to which it is limited by the policy made without the consent of the insurer, by means within the control of the insured, and increasing the risks, entitles an insurer to rescind the contract of fire insurance.
An alteration in the use or condition of a thing insured from that to which it is limited by the policy, which does not increase the risk, does not affect a contract of fire insurance.
What is the rule regarding the acts of the insured in fire insurance?
A contract of fire insurance is not affected by any act of the insured subsequent to the execution of the policy, which does not violate its provisions, even though it increases the risk and is the cause of the loss.
