SCOPE, DEFINITION AND LIMIT OF INSURANCE COVER Clause Samples

SCOPE, DEFINITION AND LIMIT OF INSURANCE COVER. The risks guaranteed by Basic Cover have the following scope, definition and limits: Guaranteeing the damages caused to the items insured as a result of fire or the means used to fight it, heat, smoke or vapour resulting immediately from fire, mechanical action of lightning strike and explosion, as well as the removal or destruction carried out at the orders of the competent authority or carried out as required for salvage, if due to any of the facts provided above. For the purpose of the guarantee of this risk, the following are taken to mean: Fire – Accidental combustion, developing flames not found in a normal source of fire, although originating in this combustion, and that is capable of propagating by its own means; Mechanical Action of Lightning Strike – Atmospheric discharge occurring between cloud and earth, consisting of one or more shocks of current that give the phenomenon a characteristic light (stroke) and that causes permanent mechanical deformation to the items insured; Explosion – Sudden, violent action caused by the pressure or depression of gas or steam. Unless the respective optional cover has been expressly contracted, the following damages are not covered: Those arising directly or indirectly from fire caused by Seismic Phenomena; Those caused by Electric Risks, namely damages caused by the direct effect of electric current in apparatus, electrical installations and their accessories, namely overloading, including that produced by atmospheric electricity, such as that resulting from lightning and short circuit, even if fire is produced in these. The exclusions provided in Art. 5 are applicable. Guaranteeing damages caused to the insured items as a result of: Typhoons, cyclones, tornedos and any direct action from strong winds or objects thrown or projected by them (whenever their violence destroys or damages several well-constructed buildings, objects or trees within a radius of 5 Kms of the insured items); Well-constructed buildings are those whose structure, outside walls and roof are built according to building standards in force on the date of construction, using materials resistant to wind, namely reinforced concrete, brickwork and ceramic tiling. Flooding due to rainfall, snow or hailstones, when these atmospheric agents penetrate to the interior of the building as a result of damages caused by the risks referred to in 2.1, and providing the damages are verified within the 48 hours following the time when the insured objects suff...