Healthier Advices - Don't Invalidate Fire Insurance
Don't invalidate your fire insurance policy.
I find this a very strange case but it just shows how important it is to read the small print as if you ignore the conditions of the policy your policy could be invalidated.
In this case it was a condition of the FIRE insurance that the SECURITY Alarm was maintained and monitored. Times had been tough for the insured and he let the maintenance of the security alarm lapse and as the ARC had not been paid for 6 months they stopped monitoring the site.
Vandals broke in and set fire to the factory. It was a furniture company and they incurred losses of over £750,000.
The case went to the High Court, the judge had nothing but sympathy for the Directors of the Company and he took 'no pleasure' in ruling that as it was a condition of the combined insurance policy that alarm was to be monitored by an external firm, the Insurers did not have to meet the claim.
Don't invalidate your fire insurance policy.
I find this a very strange case but it just shows how important it is to read the small print as if you ignore the conditions of the policy your policy could be invalidated.In this case it was a condition of the FIRE insurance that the SECURITY Alarm was maintained and monitored. Times had been tough for the insured and he let the maintenance of the security alarm lapse and as the ARC had not been paid for 6 months they stopped monitoring the site.
Vandals broke in and set fire to the factory. It was a furniture company and they incurred losses of over £750,000.
The case went to the High Court, the judge had nothing but sympathy for the Directors of the Company and he took 'no pleasure' in ruling that as it was a condition of the combined insurance policy that alarm was to be monitored by an external firm, the Insurers did not have to meet the claim.
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