Fire & Special Perils

Know the features, extensions and exclusions of Commercial Products:

Fire & Special Perils:  

The Association of British Insurers (ABI) has offered the insurance market a “Standard Fire Policy”, which is used as the basis of the policy wordings, to this Special Perils are added called – Fire and Special Perils.

1. The standard Fire policy is made up of 3 perils:
2. Fire (excluding explosion resulting from fire, earthquake or subterrain fire and the object’s

                      own spontaneous fermentation or heating 

1. Lightning

                   iii. Explosion (boilers or gas used for a domestic purpose)

1. Special Perils added as follows:
2. Explosion (chemical reactions from suddenly expanding gas

                    ii  Aircraft or other aerial devices (excluding sonic bangs)

                    iii. Riot and Civil commotion (either for fire caused by riot or civil commotion or any other damage)

1. Malicious Damage
2. Earthquake
3. Subterranean Fire

                    vii. Spontaneous fermentation or heating of the property 

                    viii. Storm – damage caused by some form of atmospheric disturbance

1. Flood
2.   Escape of water (burst pipes)
3. Impact by vehicles or animals (own damage can be added by extension)

                    xii. Sprinkler leakage 

                    xiii. Subsidence, Ground Heave or Landslip (special exceptions apply)

1. Standard Market Exclusions:
2. War
3. Radioactive contamination / explosive nuclear assemblies

                    iii. Pollution or Contamination

1. Marine policies
2. More Specifically insured clauses
3. Consequential Loss Exclusion.

 All Risks Insurance:

The ABI has developed a recommended wording for ALL RISKS policies. This added to the Fire to the Special Perils, and then add the All-Risks elements with its exclusions. 

                   Cover: All losses or destruction to property is covered provided it is accidental and not specifically excluded.

                      Exclusions (4 groups):

1. Absolute – War, Pollution, Contamination and Consequential Loss
2. Gradually operation – corrosion, rust, wind damage or property in the open
3. Aspects of cover which can be written into the policy for an addition premium – Money, Glass and Subsidence.
4. Property or Risks more appropriate to another class of business  – Motor Vehicles or Air Crafts.