Property losses Flashcards
What does MD stand for
Material damage
Material damage policy
Provides a sum of money in the event of movable or immovable property becoming lost, destroyed or damaged
What would a land MD policy protect from
From being destroyed or polluted
What is the form of indemnity usually in MD policies
Reinstatement
Perils in an MD policy
Flood, Fire, storm
Movable property
Included P&E , stock, office contents, household contents
Durable goods / white goods
Furnisher and appliances
What is the form of reinstatement on durable goods
New for old
Consumer goods
Curtains, clothing etc.
What is the form of reinstatement on consumer goods
Cost replacement less ware and tare
All risks policy
Covers everything except for what is listed
Define fire
Must be sudden and accidental, requires slow build up of heat (conflagration), ignition, heat and visible light.
Can fire be an implied term
Yes
Is arson usually covered in MD policies?
Yes as long as the insured had nothing to do with it.
Is the damage caused by extinguishing a fire covered by a fire MD policy?
Yes as the PC was a fire.
Theft
Dishonest apprehension of property with the intention of permanently depriving you of it.
Burglary
The crime of entering and stealing / attempting to steal. Must be forceful
What would invalidate a burglary claim?
If the door was unlocked
Do burglary policies cover employees robbing form the company?
No
Hard fraud
Insuring something that doesn’t exist
Soft fraud
Exaggerating the claim
What happens when the cost of repair is higher than the cost of replacement
Right off
What is covered in partial loss?
The cost of repairs
Explain indemnity on an MD policy for stock in process
Cost of labour + raw materials + overheads up until the point where production stopped
