Electrical fire a risk for buildings flooded in Sandy – press of AtlanticCity.com: Atlantic County News


Attached is a very interesting article from the Press of Atlantic City.


Fire coverage exclusions


The following property exclusions are applied to your fire coverage:

Neglect – meaning the insured’s failure to use reasonable means to save and preserve property at and after the time of loss.

War – including undeclared war, civil war, insurrection, rebellion, revolution, warlike acts by a military force or military personnel, destruction or seizure or use for a military purpose and including any consequence of any of these. Discharge of a nuclear weapon will be deemed a warlike act even if accidental.

Government Action – which eliminates coverage for damage caused by a government authority, except when attempting to stop the spread of fire.

Intentional loss – meaning any loss arising out of any act committed:

a. by or at the direction of the insured or any person or organization named as an additional insured

b. with intent to cause a loss

Acts or decisions of a person/member of any organization or government body. For example, if an individual monitoring a dam accidentally releases too much water (a negligent act) into a river causing a flood (an excluded peril), no coverage applies.

Faulty, inadequate or defective planning, design, workmanship and maintenance. For example, if a contractor designs a faulty or defective drainage system (a negligent act) which causes the earth to move a dwelling off its foundation (an excluded peril), no coverage applies.


Fire coverage


Have you ever really thought about what would happen if you lost your home in a fire?

“It will never happen to me.”
“Gosh, I hope everything is OK.”
“If we get through this, I’ll be more prepared, I promise.”
The first thing you must do is make sure you have adequate insurance coverage.

Causes of loss are the perils of the policy. Fire is a peril. The peril of fire has been defined by the courts as “oxidation sufficiently rapid to cause a flame or glow.”

Friendly fire, which is a deliberately ignited flame or glow that stays within its intended confines, such as fire within a heating, cooking or lighting unit.

Hostile fire is fire that escapes its intended confines. For example, a log rolls out of the fireplace or a hot ash falling from a cigarette.

 Property insurance policies are generally written on a Basic Form, Broad Form or Special Form basis.

The Basic Form – the most limited

The Special Form – the most comprehensive.

The named peril FIRE is covered under all three types of policies.

Named Perils: Basic Broad Special

Fire                     X        X           X

Direct losses are losses that are the direct physical result of an insured peril. Fire (including water to extinguish it) is an example of direct losses. It is the type of loss that has actual physical damage to the property or the actual loss of the property.

Indirect or consequential losses are losses that are the result of a direct loss. For example, if an individual’s home or business was damaged by fire (a direct loss), that individual or business owner would incur the consequential loss of renting another place to reside or conduct business.

%d bloggers like this: