Insurance on Property - 2.5

Summarize the explosion coverage under the Basic Fire Policy and explain the effect of adding explosion as an additional peril.

Answer:

Under the Basic Fire Policy, in common law provinces, the explosion coverage covers the damage by the explosion of natural, coal or manufactured gas, in Quebec, it covers the damage by the explosion of fuel with the exclusion of gasoline vapour.

The coverage is boardened when the explosion is added as an additional peril. It covers most kind of explosion damage with the following exclusions,

1. explosion of or in various types of boilers, pressure vessels and gas turbines;
2. explosion during pressure testing or resulting from centrifugal force or mechanical breakdown;
3. explosion by electric arcing, by bursting or rupture due to hydrostatic pressure or freezing or bursting or rupture of safety devices.