FIRE POLICY

It is a document containing the written contract between the insurer and the insured setting forth the terms and conditions under which the insurance is issued, the particulars of the property insured, risks and hazards covered, the sum assured, the cost or the rate of premium and the period.

The risk on the fire policy commences from the moment of time the cover note or the deposit receipt, or the interim protection note is given and continues for the term covered by the contract of insurance. It is the practice to allow a certain number of days as days of grace within which a fire policy may be renewed after the expiration of the term. In such a case, if a fire should occur within this time the insured would be entitled to recover damages. The days of grace only apply when the insured has the intention to renew the policy, failing which, the policy expires on the day the period runs out. If however, it is expressly stipulated in the policy that unless the renewal premium is paid and the renewal risk is accepted the insurance would expire, the insured would not be able to recover in the case where a fire occurs after the expiration of the term and before the acceptance by the fire insurance company of a proposal for further insurance.