Property insurance with IFA-Kenya
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This document provides an overview of property insurance and fire and perils insurance. It discusses what is covered under fire and perils insurance such as damage to buildings and assets from fire, lightning, and explosion. It also covers expenses associated with rebuilding damaged property. The policy extends to cover additional perils beyond fire including natural causes like floods and earthquakes, as well as social perils like riots. Consequential loss coverage is also discussed which protects against financial losses from reduced business. Exclusions to coverage and requirements for obtaining a quote are outlined.
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Property insurance with IFA-Kenya
- 1. PROPERTY INSURANCE By John Paul Otieno CEO-IFA Kenya
- 2. FIRE & PERILS INSURANCE The provides compensation against loss or damage to domestic/Commercial property described, mainly caused by fire, lightning and explosion. Fire is defined as the actual iginition of substance This insurance extends to cover other assets apart from the building such as, plant and machinery eg lifts & generators, fixtures & fittings, water tanks, swimming pools, solar equipment, fences etc. against the same risk
- 3. The policy pays up for expenses to be utilised in the rebuilding/replacing damaged property. Expenses may include the cost of : a) Removal of debris b) Construction c) Architects, surveyors & consulting engineers fees d)fees to the local authority
- 4. PERILS COVERED Apart from fire ,the policy extends to cover other Perils, classified as follows: - Social perils - Chemical perils - Natural perils - Miscellaneous perils
- 5. PERILS COVERED cont. Natural perils These Include: storm, that is atmospheric disturbances of unusual nature flood, that is, escape of water from the normal confines of any natural or artificial water works; earth quake; subterranean or underground fire or fire of volcanic nature; and subsidence, ground heave or land slip. Subsidence is uneven settlement of made up ground e.g. movement of foundations. Ground heave occur when ground that previously had low moisture is suddenly able to accept more moisture. A land slip is a min miniature land slide. It is a rapid movement down ward under the influence of gravity of a mass of rock or earth on a slope.
- 6. PERILS COVERED Social Perils These are perils with human source and they include strikes, riots, malicious damage,civil commotion & Terrorism. An extra premium may be levied to cover this perils. Chemical Perils Chemical perils include explosions and spontaneous fermentation or heating.
- 7. PERILS COVERED ..cont. Miscellaneous perils These are perils that cannot be classified under any of the above categories and are mainly escape of water, damage caused by any aerial device or articles dropped thereof and impact damage, especially to buildings caused by vehicles
- 8. EXTENTION TO POLICY CONSEQUENTIAL LOSS This additional cover protects the business against financial losses as a consequence of fire or any other loss payable under the fire policy. Losses covered include: a) loss of gross profit due to reduction in turnover/output; b) Increase in cost of working - This is the additional expenditure that has to be incurred in order to avoid or diminish the reduction in turnover c)Loss of rental income
- 9. EXCLUSIONS TO THE POLICY Excess 5% of claim amount on Earthquakes Expenses incurred on Architects, Surveyors' Consultant Engineers fees and Debris Removal in excess of 3% and 1% of claim amount respectively. Arson Acts of war (declared or undeclared) Destruction of property by any Public Authority Ionising radiation& contamination by radiation Pollution and contamination
- 10. REQUIREMENTS FOR A QUOTE Value of Building Type of construction (i.e type of walls & roofing) Physical location/Plot no. Value of machinery & other equipment within the building e.g. lifts,tanks,solar panels etc. Rental income in case of an office/residential block or gross profits in case of an industrial block