Fail to understand at your peril!

So, what is and what is not covered?

The first concept to understand about insurance, is that it centres around specific events, called “Perils” such as:

• Fire
• Lightning
• Explosion
• Earthquake
• Aircraft
• Impact
• Riot and Civil Commotion
• Storm, Tempest or Flood
• Escae of water or oil from fixed equipment
• Collapse of aerials
• Theft or Attempted Theft
• Subsidence, Ground Heave or Landslip

Even where cover is give including “Other Accidental Damage” or even on an “All Risks Basis” there must be a specific event, leading directly to the damage or loss. This is called the proximate cause.

Cover never includes deterioration over time, because of a lack of maintenance. If your roof gets old and leaky, or an old boiler ceases to function, don’t expect the insurers to pay. It is your responsibility to keep the property in a good condition.

Likewise, any damage caused by a “gradually operating cause” is also excluded, for instance pollution damage over several years from the local steel works.

Fundamental exclusions applying to the whole policy will always include:

1. War
2. Radioactive Contamination
3. Sonic Bangs
4. Changes in the Water Table
5. Electronic Risks
6. Communicable diseases

Want some advice or guidance, give us a call on 029 20 470 375 or email nigel@severnbay.com

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