Some completed civil engineering structures are only exposed to a negligible fire hazard, and therefore a typical fire policy would be inappropriate. However, these structures can still be exposed to elemental perils, geological conditions, or hazards from operation and use of the structure.
It is a named peril policy, issued on an annually renewable basis and is for material damage only. Following a loss or damage, the policy indemnifies to repair/reinstate the structure to the condition prior to the loss event. The main exclusions are: political risks; nuclear reactions, nuclear radiation or radioactive contamination; wilful act or wilful negligence; wear and tear, inherent defects; lack of maintenance and consequential loss.
The perils covered are:
- Impact of aircraft and other aerial devices or articles
- Earthquake, volcanism, tsunami
- Storm (air movements stronger than grade 8 on the Beaufort
- Flood, inundation, wave action, water, subsidence, landslide,
rockslide or any other earth movement
- Frost, avalanche, ice
- Vandalism by individuals