- 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.
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