In fire insurance the premium rates are of two kinds class rates and schedule rates. Dwellings are largely class rated, that is they are grouped into fairly homogeneous categories according to the type of occupancy, type of construction and type of community fire protection. A uniform rate is applied to all risks in the same category. Commercial and industrial which vary greatly in respect to degree of hazard, are usually schedule rated. In schedule rating the individual physical characteristics of each risk are appraised according to schedule of occupancy, construction, internal protection, community fire protection, and exposure from neighboring buildings.
The frequently used homeowner's package policy combines fire extended coverage and other perils, theft and comprehensive personal liability into one policy. This results in a saving to the policyholder and eliminates overlapping coverages. Similar package policies are available for commercial use.
In recent year. many owners of residential and business properties in congested inner-city areas have been unable to obtain adequate insurance coverage for fire, vandalism, burglary and theft. The federal housing and urban development act of 1968 encouraged insurance companies and state regulatory authorities, through a federal program of reinsurance, to set up fair access to insurance requirements plans through which residents of low-income areas may obtain the insurance they need. If damage is caused by riot or civil commotion, the federal government will reimburse the insurance company for it losses.
The Fire insurance coverage
1. General Perils
General Perils of fire policy cover the following perils:
a. Fire (including fire resulting from explosion)
b. Lighting
c. Explosion of boiler used for domestic purpose only.
d. Explosion of gas used for domestic purpose only or for lighting or heating a building not forming part of any gas works .
2. Specila perils
The standard fire policy excludes certain perils from the scope of coverage. Some of these perils can be covered on payment of additional premium. Suitable endorsements are placed on the policy. These [erils are termed as special perils and the important ones may be enumerated as follows:
a. Riot and strike risks
b. Malicious damage
c. Explosion
d. Earthquake
e. Storm, tempest, flood and inundation
f. Spontaneous combustion
g. Aircraft damage or article dropped there
In recent year. many owners of residential and business properties in congested inner-city areas have been unable to obtain adequate insurance coverage for fire, vandalism, burglary and theft. The federal housing and urban development act of 1968 encouraged insurance companies and state regulatory authorities, through a federal program of reinsurance, to set up fair access to insurance requirements plans through which residents of low-income areas may obtain the insurance they need. If damage is caused by riot or civil commotion, the federal government will reimburse the insurance company for it losses.
The Fire insurance coverage
1. General Perils
General Perils of fire policy cover the following perils:
a. Fire (including fire resulting from explosion)
b. Lighting
c. Explosion of boiler used for domestic purpose only.
d. Explosion of gas used for domestic purpose only or for lighting or heating a building not forming part of any gas works .
2. Specila perils
The standard fire policy excludes certain perils from the scope of coverage. Some of these perils can be covered on payment of additional premium. Suitable endorsements are placed on the policy. These [erils are termed as special perils and the important ones may be enumerated as follows:
a. Riot and strike risks
b. Malicious damage
c. Explosion
d. Earthquake
e. Storm, tempest, flood and inundation
f. Spontaneous combustion
g. Aircraft damage or article dropped there
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