Fire Insurance

This is a type of non life insurance that covers your house, business or any property against direct losses by fire or lightning. You may also add coverage against acts of nature coverage such as flood, typhoon or earthquake. Other man-made causes like robbery, burglary and riot, strike and malicious damage may also be added to your insurance policy.

What is a Fire Insurance?

It is a non life insurance coverage against direct losses of fire, lightning and/or by removal from the premises endangered by the perils insured against.

Kinds of Fire

Friendly

Fire that is deliberately kindled and is within the limits intended for it only, such as cooking

Hostile

Fire that goes beyond the confines intended for it or goes beyond the custodian of man

When do Fire Insurance Claim becomes compensable?

must have flame or ignition of sustaining velocity

must be hostile fire
must be caused by an accident and not intentional
must be the proximate cause of the loss or damage

Basic Fire Insurance Coverage

Fire and/or Lightning Cover

Loss or damage caused by the following:

  • Fire
  • Lightning
  • Losses as a direct result of a fire such as heat, smoke, water damage from firefighter’s efforts to extinguish the fire
  • Loss or damage while trying to save the property from the perils insurd against

Optional Fire Insurance Coverage

Earthquake Fire

This covers direct losses or damages caused by fire following an earthquake

Earthquake Shock

This covers loss or damage (other than fire) occassioned by or in consequence of an earthquake

Full Earthquake

Combination of Earthquake Fire and Shock

Typhoon

Loss and damages caused by a typhoon – must be a typhoon declared by Pag-asa

Flood

Loss and damages caused by entry of water into the insured premises due to flooding of land not usually covered by water:

  • extra-ordinary high tide
  • following typhoon, cyclone or windstorm
  • bursting or overflowing of rivers, reservoirs, canals and the like

Extended Coverage

This is an additional coverage relating to causes not directly by a fire such as smoke damage, falling aircraft, vehicle impact and external explosion.

Riot and Strike

This refers to loss or damage caused by strikers, persons disturbing the peace and/or lawful authorities acting to suppress or prevent disturbance.

Properties that can be covered

Building and Improvements

Structures and partitions are covered for the building and built-in cabinets and the like falls under improvements.

Contents

The following are covered:

  • furnitures, fixtures and fitting
  • appliances
  • stocks
  • machinery and equipment

Factors affecting Insurance Premium

Construction of the building

Class A refers to the property made out of cement from first floor up. Class B on the other hand refers to typical old types of structures of houses where the first floor is made of cement and second floor is made of wood. And the last classification are those properties made out of light materials only.

Occupancy

There are 4 types of occupancy depending on the usage of the property:

  1. Residential – townhouse, subdivision
  2. Industrial – factories, manufacturing
  3. Warehouse – storeroom, storehouse
  4. General – all other establishments not under those above such as schools, markets, churches, etc.

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