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Liberty Quality Home - house and contents insurance

 

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Article 32 - Indemnity clause for damage to goods covered by the Insurance Compensation Consortium for losses derived from extraordinary events occurring in Spain

 

Pursuant to that set forth in the revised text of the Legal Statute of the Insurance Compensation Consortium, approved by Royal Decree 7/2004 of 29 October and amended by Act 12/2006 of 16 May, the policyholder of any type of insurance agreement including an obligatory surcharge in favour of the aforementioned public body may arrange for the cover of extraorinary risks with any insurance company that meets the conditions required under current legislation.

 

The Insurance Compensation Consortium shall pay the indemnities arising from losses sustained as a result of extraordinary events occurring in Spain and affecting risks located therein, when the policyholder has paid the corresponding surcharge in the policy, and they find themselves in any of the following situations:

 

a. The extraordinary risk covered by the Insurance Compensation Consortium is not covered by the insurance  policy taken out with the insurance company.

 

b. That, even if it is covered by said  insurance  policy, the insurance company cannot meet its obligations because it has been judicially declared bankrupt or it is subject to compulsory liquidation proceedings or such liquidation has been undertaken by the Insurance Compensation Consortium.

 

The Insurance Compensation Consortium shall act pursuant to that set forth in the aforementioned Legal Statute, that set forth in the Insurance Contracts Act 50/1980 of 8 October and that stipulated in the Regulations on Extraordinary Risk Insurance, approved by Royal Decree 300/2004 of 20 February and in the additional legal provisions.

 

1. SUMMARY OF LEGAL REGULATIONS.

1. Covered extraordinary events

 

a. The following natural phenomena: earthquakes and tidal waves, extraordinary floods (including the pounding of waves), volcanic eruptions, atypical cyclonic storms (including extraordinary winds with gusts of more than 135 km/hr and tornados) and the fall of astral bodies and aerolites.

 

b. Events caused suddenly as a result of terrorism, rebellion, insurrection, riots and civil unrest.

 

c. Acts or actions of the armed forces or of the security forces and services in times of peace.

 

PROCEDURE TO FOLLOW IN THE EVENT OF A CLAIM COVERED BY THE INSURANCE COMPENSATION CONSORTIUM

 

 

 

2. Excluded risks

a. Those that do not give rise to an indemnity according to the Insurance Contracts Act.

b.  Damage and losses caused to people or things insured by insurance agreements other than those that include the obligatory surcharge in favour of the Insurance Compensation Consortium.

c. Those due to inherent faults or defects in the insured object or an evident lack of adequate maintenance.

d. Those caused by armed conflicts, even when no official declaration of war has been made.

e. Those derived from nuclear energy, notwithstanding that set forth in Act 25/1964 of 29 April.

Notwithstanding the foregoing, any indirect damages sustained in an insured nuclear plant shall be understood to be included when such damage occurs as a result of an extraordinary even affecting the plant itself.

f. Those due to the mere passage of time and, in the case of goods that are fully or partially submerged on a permanent basis, those attributable to the mere action of the waves or ordinary currents.

g. Those caused by natural phenomena other than those set forth in Article 1 of the Regulations on Extraordinary Risk Insurance and, in particular, those caused by a rise in the water table, hillside movements, landslides or settlement movements, falling rocks and any other similar phenomena, unless these are evidently caused by the action of rain water that simultaneously caused extraordinary floods in the area.

h. Those derived from commotions caused during the course of meetings and demonstrations carried out according to that set forth in the General Act of Parliament 9/1983 of 15 July, which regulates the freedom of assembly, as well as during the course of legal strikes, unless said actions can be classified as an extraordinary event pursuant to Article 1 of the Regulations on Extraordinary Risk Insurance.

i. Those caused by bad faith on the part of the insured

j. Those derived from accidents that occurred during the waiting period stipulated in Article 8 of the Regulations on Extraordinary Risk Insurance.

k. Those occurring prior to payment of the first premium or when, in accordance with that set forth in the Insurance Contracts Act, the cover provided by the Insurance Compensation Consortium has been suspended or the insurance has been terminated due to non-payment of  premiums.

l. Indirect damages or losses arising from direct or indirect  damages, other than the loss of profits as defined in the Regulations on Extraordinary Risk Insurance. In particular,  damages or losses sustainted as a result of cuts or alterations in the exterior electricity supply, combustible gases, fuel oil, gas oil and other fluids are not covered, nor are any indirect losses or damages other than those set forth in the previous paragraph, even if these alterations are derived from a reason included in the cover of extraordinary risks.

m. Accidents that, due to their magnitude or severity, are classified as a catastrophe or national disaster by the Spanish government.

3. Deductibles

In the case of direct damages (except vehicles, homes and homeowner associations for these homes), the deductible payable by the insured shall be 7% of the cost of the indemnity for the damage caused by the claim. In the case of loss of profits cover, the deductible payable by the insured shall be that set forth in the insurance policy for damage caused by ordinary claims that result in a loss of profits.

4. Extension of the cover

The cover of extraordinary risks shall extend to the same property and sums insured as those stipulated in the policies that cover own damage to motor vehicles, the Consortium guarantees the full insured interest, even though the ordinary  policy only does so partially.

 

 

 

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