This policy is designed to pay compensation to client as a result of loss of or damage to physical assets owned by the company.
The perils covered are itemized as follows:
- Fire
- Lightning
- Explosion
- Electrical Installation
- Bursting or overflowing of water tanks, apparatus or pipes
- Riot, Strike, Civil Commotion and Malicious Damage
- Aircraft damageImpact by land moving vehicle or animal.
Clients assets to be insured under this policy may be described as follows
- Buildings used as offices, Warehouses, etc.
- Office Furniture, Fixtures, Fitting & Furnishings
- Office Machines & Equipment of all description
- Generators
- Others
Insurance on this policy normally suffers from gross under-insurance. This is a situation where the Sum Insured is far below the actual value at risk. To avoid this error there is the need for you to undertake periodic valuation of your properties to ensure that the sums insured represent the actual values of your properties.
The Fire/Allied Perils policy is also subject to the Average Clause, which states that if in the event of a claim it is established that there is under-insurance, then, the insured becomes his own insurer and bears a rateable share of the loss. It is therefore re-emphasized that proper valuation of your properties are made so as to ascertain their current values for insurance purposes.
You can also enter into Long Term Agreement (LTA) with insurers as a means of obtaining 10% Discount off your premium. Under the LTA, you will have to offer to renew the policy with the same insurer for a period of at least three (3) years. |