Bryan Christian C.

Ricalde
JD-NT 3, EH 404
USC - LAW

A special type of property casualty insurance A form of property insurance that pays the
Friendly Fire - One that burns in a place Losses caused by the discharge of atmospheric
that protects policyholders from property policyholder in the event of an earthquake that
where it was intended to burn and ought electricity. Loss may be covered even if no
damage caused by windstorms. This is usually causes damage to the property. Most ordinary
to be. Insurer is not liable. fire results. If fire results, it’s compensable.
offered in the form of a rider. homeowners insurance policies do not cover
earthquake damage.
Hostile Fire - One that is uncontrolled and
that escapes from the place where it was
intended to burn and ought to be. Insurer
is liable.
Once a fire has passed outside the limits
assigned to it, it becomes a hostile fire.

insurer is liable upon a partial loss, only for such proportion

of the amount insured by him as the loss bears to the value of
the whole interest of the insured in the property insured.

Applicability
An alteration in the use or condition of a thing Applies primarily to marine insurance. However, the rules on
insured from that to which it is limited by the Co-Insurance applies to fire insurance only if expressly
policy made without the consent of the insurer, agreed upon.
by means within the control of the insured,
and increasing the risks, entitles an insurer to
rescind a contract of fire insurance.
If it does not increase the risk, does not affect
a contract of fire insurance. The insurance policy may also include express
warranties regarding the use and condition of
the insured premises.

1. The use or condition of the thing is

specifically limited or stipulated
in the policy;
2. Such use or condition as limited
by the policy is altered;
3. The alteration is made without the
consent of the insurer;
4. The alteration is made by means
within the control of the insured;
5. The alteration increases the risk
Open Valued
only the expense necessary to replace
War and Related Risks
the parties are bound by the A policy may expressly exclude war, invasion,
the thing lost or injured in the condition valuation, in the absence of fraud civil commotion, or to the abnormal condition
it was at the time of the injury or mistake arising from the perils insured against.
However, the mere fact that fire destroyed
the thing insured when there is war does not
automatically prevent recovery.

There is an increase in the hazard or risk if there A contract by which the insurer Hostile fire, including loss by
for a consideration agrees to lightning, windstorm, tornado or Intentional Acts of the Insured
is a substantial change of conditions affecting Just like any other Insurance Contract, the
the risk as materially to increase it. indemnify the insured against earthquake and other allied risks,
loss of, or damage to, property by when such risks are covered by insurer may refuse to pay if the loss was the
hostile fire. result of intentional act of the insured.
extension to fire insurance
policies or under separate
policies.