NEW INSURANCE RISK

Manawatu Times, Volume LII, Issue 6455, 12 November 1927, Page 11

NEW INSURANCE RISK

AGAINST SUBSIDENCE OF BUILDINGS. The latest insurance risk is that relating: to subsidence of buildings. Following the recent collaps e of a large building in London owing to subsidence of the foundations, a great British company has announced that it is devoting special attention to this class of business. The indemnity for which the company is prepared to quote premium rates, covers destruction or damage by collapse by the whole or part of a building duo to subsidence. The policy provides that if the property insured shall at the time of any loss be of greater value than th e sum insured, the policy holder shall only be entitled to recover such proportion of the loss as the sum insured bears to the total value. Consequently loss i.e., loss arising indirectly from the direct and material loss, is not covered. A question is asked on the proposal form as to whether the proposer is awar e of any building- Or excavation operations proceeding or likely to ,take place in the immediate vicinity of the property. The insured is also required to notify the company of any subsequent development within his knowledge materially increasing the risk, and to pay any additional premium required.