• THE FIRE INSURANCE CONTRACT
  • WHO MAY INSURE
  • WHAT MAY BE INSURED
  • PERILS COVERED
  • THE AMOUNT OF INSURANCE OR SUM ASSURED

The Fire Insurance Contract is a contract of Indemnity whereby the Insurer’s undertaking is to compensate the Insured only to the extent of his financial loss. This may be in the form of a cash payment or the repair or replacement of the damaged insured property to the condition it was at the time of loss.

Who may insure:

  • absolute owner, part owner or joint owner of the property
  • mortgagor or mortgagee
  • lessor or lessee
  • bailee, trustee, executor, or administrator
  • any person who has insurable interest on the property

What may be insured:

  • building (completed or under construction)
  • contents: business or household appliances, utensils, furniture, fixture, and fittings; machinery, equipment, tools, spare parts and accessories; stocks in trade, goods or merchandise; personal effects of every kind & description; betterments and improvements

Perils covered: Standard: Fire and Lightning

Allied: Earthquake, fire/shock, typhoon, flood, extended coverage, riot and strike, malicious damage, landslide, subsidence, sprinkler leakage, etc.

The amount of insurance is the maximum liability of the insurance company. It also serves as the basis for premium calculation. It is not intended to be the amount of payment in the event of loss since all losses by fire shall be subject to appraisal.