We started a new discussion last week on Fire insurance and we pointed out that what is operational in the Nigeria insurance market is a standardized cover referred to as Fire & Special Peril Insurance. This encompasses other perils that were hitherto subject to request and payment of additional premiums.

We will continue our discussion by looking at this additional perils and the extent of their covers while not boring you with technical details.

Peril A: Fire damage (Fire, Lightening and explosion)

1. Fire – covers damage caused;

     I. Directly by fire

     II. By water used in extinguishment or by other extinguishing agents.

    III. By fire brigade while fighting the fire.

    IV. By smoke.

      V. By falling walls or part of a building in which a fire takes place.

2. Lightening – covers damage caused

      I. By fire resulting from ignition brought about by lightning

     II.  By thunderbolt

3. Explosion 

Cover is limited to explosion of Boiler and of Gas used for domestic purposes (that is home use irrespective of whether the environment is industrial, office or domestic) only.

Peril B. Explosion damage:

This is different from the first explosion under fire peril and it is defined by its exclusions which are

    I. Explosion of boilers, economizers, or other vessels, machinery or apparatus in which pressure is used or their contents. These items are subject of another policy which is Engineering Insurance.

    II. Acts of terrorism. This is a standard exclusion

Peril C. Aircraft:

This covers damages caused by aircraft or other aerial devices or articles dropped from them.But it excludes damages caused by air waves produced by them. This is because there is no physical impact.

If an item falls from an aerial device and damages your property or objects from a crash scene damages your property, it is covered under your fire insurance. However, damages not directly related to impact (airwaves or sound damage) is not covered.

Peril D. Riot, strike and lock-out workers:

This covers damage directly caused by:

     I. The act of any person(s) taking part together with others in any disturbance of the public peace.

      II. The willful act of any striker or locked-out worker done in furtherance of a strike or in resistance to a lock-out;

     III. The act of any lawfully constituted authority in suppressing or to suppress any such disturbance. Hence, damage to your property by the police in an attempt to enforce low and order is covered.

It however excludes

      I. Act of terrorism

     II. Consequential loss

     III. Communal and/or religious disturbance

Peril E. Malicious Damage: 

Damage to the property insured directly caused by the malicious act of any person (whether or not such act is committed in the course of a disturbance of the public peace) other than damage arising out of theft or any attempt threat.

Peril F. Earthquake Or Volcanic Eruption Damage:

This also includes flood or overflow of the sea occasioned thereby.

Peril G. Storm, Tempest, Flood & Tornado

This peril excludes damage caused by

     I. The escape of water from the normal confines of any natural or artificial water course or lake reservoir canal or dam or any water tanks apparatus pipes.

   II. Inundation from the sea whether resulting from storm or otherwise.

 III. Frost, subsidence or landslip

 IV. To any outdoor fixtures and fittings, gates and fence and movable property in the open

  V. To premises in course of construction, alteration or repair

 VI. Water or rain except rain or water entering the building through openings made by the direct force of the storm or tempest or flood or tornado

Peril H. Escape Of Water From Any Tank, Apparatus Or Pipes

This peril excludes damage

     I. By water discharged or leaking from an installation of automatic sprinklers

     II. In respect of any unoccupied buildings.

Peril I. Impact By Any Road Vehicle Or Animal

Also covers damage to property by any road vehicle or animal whether belonging to or under the control of the insured or any occupier of the premises or their respective employees.

To Be Continued.

Thank you for reading. We would like to have your view and also know if this post has been of any benefit to you. Kindly leave a comment.