When preparing to submit a claim for a loss from fire and associated perils it is imprtant to note that your policy may be extended to cover some or all of the following perils:

Bush Fire, Burst Pipes, Explosion, Earthquake, Normal Flood, Windstorm, Impact Damage by third party vehicles or animals, Malicious Damage, Riot and Strike, Smoke Damage, Tornado, Windstorm, Spontaneous Combustion.

Some of these perils may carry small excesses, but others such as Windstorm, Earthquake and any Resultant Flood have large ones usually expressed as a percentage of the total sum insured.

After any incident that may be covered under this policy, the following actions must be taken;

• Secure the site.
• Do not clear the site or dispose of assets except to secure property from further damage.
• Advise CIC of the damage as soon as possible after the incident.
• Await the arrival of the Insurer/Loss Adjuster/CIC.
• Provide written details (as far as practicable) of the property damaged and estimates of their values. This must be submitted to insurers within 15 days of the date of loss.

CIC will;

• Visit you as soon as notification of a claim is given.
• Advise you to obtain substantiating documentation (see Documentation below).
• Advise of policy conditions and excesses.
• Advise that the adjuster will be counting damaged and undamaged stock.
• Advise you to set up separate books of account for recording expenses incurred in repairing/replacing property.

Please note that the adjuster may not accept accounts, especially of stock, that are not prepared by a certified accountant or recognized auditor. You must in every case, be able to prove the value of your loss.


At the first meeting with the adjuster:

• All your key people should be attendance.
• Provide a brief but complete history/overview of the company, its operations and lay out of buildings.
• Provide copies of sales records and last audited accounts.
• All information regarding circumstances of loss should be revealed.
• Contingent business plans should be discussed.

The adjuster will:

• Count damaged/undamaged stock as soon as possible.
• Count stock at other locations if any.
• Comment on breaches of conditions/warranties as soon as possible.
• Require three years audited stock reports prior to loss.
• Examine bank statements and internal records.
• Appoint an independent auditor to examine claims.
• Require letters of authorization to talk to auditors, suppliers, and creditors.
• Compare V.A.T. returns to accounts.

The adjuster will also request documentation on buildings, stock and machinery

Buildings

• Documentary proof of ownership.
• Copy of last valuation report.
• Details of significant building modifications since last valuation report.
• In the absence of a valuation, a detailed description of the building and a copy of the building plans.
• Where the building is capable of repair, obtain a contractor’s estimate or Quantity Surveyor’s report itemizing the repairs in detail.
• Where the building is irreparable, obtain a valuation on the residual elements such as ground floor slab, foundations etc.
• Two estimates for demolition and debris clearance costs and architect’s/surveyor’s fees.
• Provide your VAT Registration Number.

Stock

• A copy of the last audited financial statement.
• Purchases since the close of the last financial year up to the date of loss.
• Sales at cost since the close of the last financial year up to the date of loss.
• The value of goods remaining in the affected premises (certified as correct by your accountants/auditors).
• Value of goods kept at other locations (certified correct by your accountants/auditors).
• Check with Police to ascertain whether any items recovered. Your list of recovered items should be endorsed by the Police.

The adjuster will also ask for a stock reconcilliation using the following formula

Stock in trade at close of last financial year
+ Purchases
- Sales at cost
- Value of goods at other premises
- Salvage of goods within affected premises


Machinery, Equipment and Other Contents

• Any information from your accountants/auditors available from historical records dealing with items under this heading whether damaged or not.
• Detailed lists of items lost/damaged and undamaged giving ages and values on a current replacement price basis, net of any discounts available.
• Where items are repairable obtain a quotation(s) for repair.
• Check with Police to ascertain whether any items are recovered. Your list of recovered items should be endorsed by the Police.