FIRE INSURANCE of each loss equal to the so called

co-insurance apportionment ratio.

I. Concept (shall include loss by:)
1. Fire 𝐴𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝐼𝑛𝑠𝑢𝑟𝑎𝑛𝑐𝑒
𝑥 𝐴𝑚𝑜𝑢𝑛𝑡 𝑜𝑓 𝐿𝑜𝑠𝑠
a. Hostile fire – insurer liable 𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 𝑃𝑜𝑟𝑝𝑒𝑟𝑡𝑦
b. Friendly fire – insurer not = 𝐴𝑚𝑜𝑢𝑛𝑡 𝑃𝑦𝑎𝑏𝑙𝑒
liable
2. lightning VII. Exceptions
3. windstorm a. War related Risks
4. tornado b. International Act
5. earthquake VIII. Warranty
6. other allied risks - In addition to the statutory
provisions regarding alterations, the
II. Alteration insurance policy may likewise express
Requisites: warranties regarding the use and
1. on the use or condition of the thing condition of the insured premises.
insured
2. use or condition of thing insured is
limited in the policy
3. without consent of the insurer
4. within the control of the insured
5. increases the risk

III. Subsequent Acts of the insured

- does not affect contract as long as
it does not vioate its provisions
even though increases risk and is
the cause of the the loss.

IV. Measure of indemnity

1. Valued Policy
a. Option to Rebuild Clause
2. Open Policy

V. Indirect Losses
1. financial loss due to the direct
physical damage of physical
property
2. indirect or consequential losses
arising out of the loss of use of the
property.
a. business interruption
insurance
b. extra expense insurance
c. rent insurance

VI. Co-Insurance Clause

- apportionment of losses between
an insurer and its insured such
that the insurer will pay a fraction