HISTORY & DEFINITIONS
The developments of the earliest fire insurance method during the 17th century was attributed
To the Great Fire of 1666 that destroyed 85% of the City of London. One of the famous fire
Insurance method was developed by Nicolas Barbon. He guaranteed the repair of buildings and \
Houses he constructed if they were damaged by fire.
In 1752, two corporate insurance entities established by English Parliament : the Royal Exchange Assurance Corporation and the London Assurance Corporation. Soon, afterwards, American fire
insurance companies followed, like the Philadelphia Contributorship (1752) of Benjamin Franklin and the Mutual Assurance Corporation (1784). The latter was popularly known as ,,Green Tree,, because of the emblem on its ,,fire mark,, as a symbol attached to the front of the house to mark the houses insured by them.
DEFINITION OF FIRE INSURANCE
A contract whereby one ( Insurance company) promises , for a consideration (premium) to indemnify another ( insured) for direct loss or damage of the latter’s property by fire or lightning.
DEFINITION AND KINDS OF FIRE
Fire – rapid oxidation producing either flame (ignition) or glow; combustion of sufficient velocity producing flame, glow or incandescence.
THREE ESSENTIAL ELEMENTS OF FIRE
1) Heat - lightning sparks, explosion or friction
2) Fuel – carbon base materials; and
3) Oxidizing agents – air ( oxygen )
KINDS OF FIRE
1) Friendly fire – intentionally lit and is confined within the limits intended for
2) Hostile fire – goes beyond the confines intended for and goes beyond the control of custodian.
ALSO INCLUDED
Damage during or immediately following a fire caused by :
A. Smoker or scorching
B. Falling walls and the like
Damage caused by fire brigade or other competent authority in the discharged of their duty.
Loss or damage to property removed from a burning building cause by rain, theft or damage during removal.
As you can see, it is all a piece of cake. It,s very simple. When you understand this then you will most probably know how to insure your properties, right?
Unfortunally it is absolutely not that simple. These are only the definitions of fire etc. The difficulties are in the extension of cover and most of all the, non standard, clauses.
That is why you need Nicolas Insurance Brokers. We will insert so many clauses , some even developed by our office and introduce here in the Phils. , so that in case of claim your interests are practically optimal secured.
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