We suggest policyholders consider subscribing for add-ons available under the fire insurance cover. Below we cover an exhaustive list of add-ons for you to evaluate the relevant ones for your property insurance –
- LONG TERM AGREEMENT- Insurers offer premium discounts for longer coverage agreements i.e. for 3-5 year coverage terms.
- TEMPORARY REPAIR COST- Cover for cost of reasonable and necessary temporary repair of the damaged property.
- MODIFICATION COSTS AND EXPENSES FOR INCOMPATIBILITY OF EQUIPMENT- Cover for costs involved in case of incompatibility between replacement equipment and the existing equipment. For example –
- Modification of equipment including computers and ancillary equipment
- Restoration of computer records
- LAPTOP COMPUTER – Worldwide coverage for laptop computers provided the total value of the Laptops owned by the insured is covered. The excess is reduced to 5% of the sum insured of each Laptop.
- ROADS PAVEMENTS AND STREET FURNITURE- Extends coverage to include damage to roads, pavements and street furniture provided their total value is covered in the sum insured.
- MOULD & FUNGI ENDORSEMENT – Insures additional damage to property by mould, mildew, fungus or spores after damage to the property by one of the listed perils in standard fire and special perils policy.
- ADDITION CUSTOMS DUTY – Cover for Additional Custom Duty incurred by the insured over and above the Custom Duty amount taken into account for sum insured of the damaged The excess under this extension is reduced to 5% of the admissible Additional Custom Duty.
- LEAK SEARCH/FINDING COST – Cover for necessary and reasonable expenses incurred in locating and obtaining access to repair leaks or other damages.
- DEFERRED PAYMENTS- Covers loss of outstanding amount in case property is sold under a deferred payment plan. This cover requires the insured to perform all reasonable efforts, including legal action, for collection of the outstanding amount due or to regain possession of the property.
- DAMAGE TO BUILDING (OCCASIONED BY THEFT) – Cover for damage to the insured premises caused during an incident of burglary or theft.
- COST OF RE-WRITING RECORDS – Cover for cost, charges and expenses incurred in replacement/restoration of documents that may have been destroyed, damaged or mislaid (only for the value of the material and not for their value to the insured). Documents may consist of deeds, views, agreements, maps, plans, records, books, letters, certificates, etc. however bearer bonds, coupons, bank currency notes, etc. are covered under this insurance.
- EMPLOYEES PERSONAL PROPERTY/EFFECTS – Cover for loss or damage to the personal property of employees for which the insured is responsible whilst at the premises of the insured.
- PROPERTY OUTSIDE/AWAY FROM THE PREMISES – Cover for property outside/away from insured’s
premises including stocks outside plant premises, in tanks/pipelines, or for conversion, stock in depot whether owned or leased.
- VESSEL IMPACT TO JETTY – Cover for damage caused by vessel impact to the crude or product jetty used by the insured.
- DEFENSE COSTS- Cover for the legal cost to defend a suit against the insured and/or its directors, officers and employees for alleged physical loss or damage to property of others which was in care, custody or control of the insured.
- NEW LOCATION COVER- Cover for the property at a new location required by the insured up to the sum insured limit specified under the extension. The coverage is granted automatically up to a period of 15 days from the date of acquisition with an implicit understanding that the insured will declare the value of the property and take coverage by paying an additional premium from the date of acquisition on a pro-rata basis within this time period.
- LIABILITY FOR DUTY – Cover for insured’s liability for customs, excise tax and other duties which the insured may become liable to pay in the event of loss or damage
- POLLUTANT CLEAN UP AND REMOVAL – In the event of direct physical loss or damage to the property insured arising directly from seepage or pollution or contamination, the extension covers costs for –
- Removing debris from the damaged or destroyed property
- Cleaning up the loss location
- Cleaning up the pollutants from land and water at the insured’s premises
However, the extension does not insure against fines or penalties incurred by order of the government agency, court or other authority.
- UNDECLARED PROPERTY OF OTHERS – Cover for the property of others which the insured is responsible for or has agreed to insure but the insured has not declared such property under its books or records.
- VALUABLE PAPERS AND RECORDS MEDIA & SECURITIES – This extension enhances the definition of property to include valuable papers and records including media and securities. In case of damage or loss to the above items, the basis of valuation and settlement shall be the cost to reproduce the item in the current time including the cost of gathering and assembling information. The definition of valuable papers and records, media and securities is as under –
PS: Securities mean all negotiable and non-negotiable instruments or contracts representing either money or other property, including revenue and other stamps, tokens and tickets but not money.
- INVOLUNTARY BETTERMENT – In the event that new property of like kind and quality is not obtainable, the property which is as similar as possible to the damaged one and capable of performing the same function shall be deemed to be the new property. This should not be considered as betterment and hence insured is not be required to share part of the replacement cost with the insurance company.
So, having explained the above add-ons we would suggest you evaluate your requirements and subscribe to relevant ones for your property insurance cover.