What is the purpose of a fire and special perils policy?
To compensate a business for damage to insured property such as buildings, stock and contents.
What exclusions apply to the basic fire peril?
Explosion from fire, earthquake or subterranean fire, and spontaneous fermentation/heating of the item.
What does the lightning peril cover?
All damage caused directly by lightning even if no fire occurs.
What explosion cover is included under the basic fire policy?
Only explosion of boilers or gas used for domestic purposes.
What does the aircraft peril cover?
Damage from aircraft, aerial devices or articles dropped from them, excluding sonic bangs.
What does the riot and civil commotion peril cover?
Damage from riot, civil commotion, strikers, locked‑out workers and politically motivated malicious persons.
What additional explosions are covered when the explosion special peril is added?
Chemical, vapour or dust explosions from industrial processes like solvents, sprays, fertilisers and flour.
What exclusions apply under the storm peril?
Damage from frost, subsidence/heave/landslip, change in water table, and moveable property or fences in the open.
What does escape of water exclude under special perils?
Water from sprinkler installations and damage to empty or unused buildings.
How is malicious damage cover normally provided?
As an extension to riot cover, extending it to all malicious damage.
What do subsidence, ground heave and landslip each mean?
Subsidence = sinking ground; heave = upward swelling from moisture; landslip = downhill movement of earth on a slope.
What are the key exclusions for subsidence, heave or landslip?
Normal settlement, made‑up ground movement, erosion, defective design/workmanship, and damage from structural works.
What does the impact peril cover?
Impact by third‑party vehicles or animals, excluding the insured’s own vehicles unless extended.
What does an all‑risks policy cover?
Accidental loss, destruction or damage unless specifically excluded.
What are the four main exclusion groups under an all‑risks policy?
Absolute exclusions, gradual deterioration, add‑in covers (money/subsidence), and property better insured elsewhere (motor, aircraft).
How does first loss basis work under property insurance?
The insured selects the maximum likely loss for perils unlikely to destroy all property, reducing the sum insured and premium.
Why must theft involve forcible and violent entry or exit?
To avoid covering broad Theft Act risks like shoplifting and limit cover to thefts with physical evidence.
What situations are covered under money insurance?
Money in transit, during business hours, in night safes, in approved safes out of hours, small amounts left out of safes, and money in private residences or with collectors/security firms.
