There are three main types of policies issued under this class of insurance.
- Fire standard policy
This policy is issued mainly for business premises. It can be arranged on full value policy under declaration or non declaration basis and/or floating policy.
- Floating policy:
More than one location is covered under one sum insured. E.g. a sum of TShs.3 million may be floated over five locations of godowns.
- Declaration Policy:-
A Policy is issued for an estimated amount representing the maximum sum amount likely to be at risk during the year.75% of the annual premium at the appropriate rate is provisionally collected subject to adjustment at the end of the year.
The insured is required to declare, monthly etc. the actual values undertaking during that period. In the event of the insured failing to make a declaration the sum insured is taken to be the declared value for that period
On the expiry of the policy the total amount declared is divided by the number of declarations made and the average amount is calculated and additional premium is charged or a refund of premium made whichever is greater or less than the deposit premium. The policy concerns insurance of stock and shall be subject to the condition of average.