Let’s Talk about Insurance basics 101 – Part 2
MATERIAL DAMAGE is the main concern of most clients in the first instance, that is damage or destruction of STUFF!
We could be talking about buildings, stock, equipment, machinery, fixtures and fittings, computers among other things, but what are the actual events for which they are covered?
These are called the PERILS!
- Fire, Lightning, Explosion & Earthquake
- Riot & Civil Commotion
- Malicious damage
- Aircraft and aerial devices
- Impact by vehicles, animals
- Storm or Flood
- Theft or attempted Theft
- Subsidence, Ground Heave or Landslip
- Escape of water or oil from fixed appliances
- Falling Trees
- Accidental breakage of fixed glass
- Breakage or collapse of television radios or aerials
- Accidental damage to underground pipes and cables
- Wider accidental damage
- All Risks cover world wide
Even with the all-risks cover you must understand, that an event must occur. There has to be an identifiable event that causes the damage, destruction or loss. Gradual deterioration over time is never covered, neither is normal wear and tear or fouling by domesticated pets.
There are a few more general exclusions which include War, Nuclear Explosions, Sonic Bangs, Electronic malfunction risks and now communicable diseases. The first three, along with diseases, are all events that would be addressed by governments or existing laws as the costs and implications are too widespread for any insurer to afford.
There are of course other extensions to cover and other more specific exclusions, so always read your policy wording, understand what is or is not covered, #becauseaccidentshappen to nice people all the time.
Better still ask a professional for advice.
Have a great day.