This article helps you to understand some of the most basic special perils insurance terms.
Special Perils Insurance- It is a contract that safeguards the insured against unforeseen contingency caused by accidental fire, lightning, explosion, and destruction, man-made perils in the form of riots, strike and also natural calamities.
Description- It is a contract wherein the insurer guarantees to pay for the loss and damage happen to the property for the specified period of time. The valuation of assets is made according to the market value.
Fire- destruction caused to the property insured by either its own fermentation, natural heating or spontaneous combustion.
Explosion - An explosion may be described generally as a sudden and rapid combustion that causes a violent expansion of the air.
Aircraft Damage- It is the loss, destruction or damage caused by an aircraft, aerial or space devices.
Malicious Damage- It can be defined as the deliberate and intentional harming of property.
Riot- It is a public disturbance that involves acts of violence by people which results to damage of property.
Natural Calamities- This are the disasters that include: storms, earthquakes, floods and hurricanes.
Accidental fire- An unintentional fire, from which any resulting loss can be claimed as an insurance liability.
Landslides- It includes all varieties of mass movements of hill slopes. It can be defined as the downward and outward movement of slope forming materials that are composed of rocks, soils or artificial fills along surfaces of separation by falling, sliding and flowing, either slowly or quickly from one place to another.