1) Notice of loss – must be immediately given, unless

delay is waived expressly or impliedly by the insurer

Prerequisites to
2) Proof of loss – according to best evidence recovery:
obtainable. Delay may also be waived expressly or FIRE
impliedly by the insurer (Hostile Fire)

1) Open policy: only the expense necessary to

replace the thing lost or injured in the condition it
was at the time of the injury
TORNADO

LIGHTNING

Usually covered
2) Valued policy: the parties are bound by the EARTHQUAKE by a separate
valuation, in the absence of fraud or mistake policy
Measure of
Indemnity
RISKS OR LOSSES
If wind of such
COVERED WINDSTORM force as to
cause damage

OTHER ALLIED
It is a clause requiring the insured to maintain
RISKS
insurance to an amount equal to the value or
specified percentage of the value of the insured
Co-insurance
property under penalty of becoming co-insurer to 1. Physical damage
clause
the extent of such deficiency. It divides the potential caused to other
risk between the insured and the insurer in case of property.
INDIRECT LOSSES
partial loss or destruction of the insured property. 2. Loss of Earnings to
(With the
interruption of
attachment of a
business by damage to
consequential
insured’s property.
loss form)
FIRE 3. Extra expense or
INSURANCE additional
expenditure.
Express warranties on the
use and condition of the WARRANTY
property insured
HOSTILE FIRE INSURER IS
LIABLE
LIABILITY OF
INSURER
INSURER IS NOT
FRIENDLY FIRE
LIABLE
1. War and other related risks

1. The use or condition of the

thing is specifically limited or
stipulated in the policy;
EXCEPTIONS

2. Such use or condition as

limited by the policy is altered;

ALTERATION AS
A SPECIAL
2. Intentional acts causing GROUND FOR
the fire insured against RESCISSION BY 3. The alteration is made without
INSURER the consent of the insurer;

4. The alteration is made by means

within the control of the insured;

5. The alteration increases the risk;

But a contract of fire insurance is not

affected by any act of the insured
subsequent to the execution of the
policy , which does not violate its
provisions even though it increases the
risk and is the cause of the loss.