fire insurance case study pdf

La Crema: A Case Study of Mutual Fire Insurance

UPF Economics and Business Working Paper No. 518

30 Pages Posted: 31 Jul 2001

Antonio Cabrales

Universitat Pompeu Fabra - Faculty of Economic and Business Sciences

Antoni Calvo-Armengol

Autonomous University of Barcelona - Department of Economics; IZA Institute of Labor Economics

Matthew O. Jackson

Stanford University - Department of Economics; Santa Fe Institute

Date Written: February 2001

We analyze a mutual fire insurance mechanism used in Andorra, which is called La Crema in the local language. This mechanism relies on households' announced property values to determine how much a household is reimbursed in the case of a fire and how payments are apportioned among other households. The only Pareto eficient allocation reachable through the mechanism requires that all households honestly report the true value of their property. However, such honest reporting is not an equilibrium except in the extreme case where the property values are identical for all households. Nevertheless, as the size of the society becomes large, the benefits from deviating from truthful reporting vanish, and all of the non-degenerate equilibria of the mechanism are nearly truthful and approximately Pareto efficient.

Keywords: Insurance, contract theory, mechanism design, truthful revelation

JEL Classification: A13, C72, D64, D80

Suggested Citation: Suggested Citation

Antonio Cabrales (Contact Author)

Universitat pompeu fabra - faculty of economic and business sciences ( email ).

Ramon Trias Fargas 25-27 Barcelona, 08005 Spain (34-93) 542 27 65 (Phone) (34-93) 542 17 46 (Fax)

Autonomous University of Barcelona - Department of Economics ( email )

Campus Bellaterra Barcelona, 08193 Spain +34 93 581 3068 (Phone)

IZA Institute of Labor Economics

P.O. Box 7240 Bonn, D-53072 Germany

Stanford University - Department of Economics ( email )

Landau Economics Building 579 Serra Mall Stanford, CA 94305-6072 United States 1-650-723-3544 (Phone)

HOME PAGE: http://www.stanford.edu/~jacksonm

Santa Fe Institute

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Fire insurance claim examples

Published January 13, 2021

Read time 3 mins

Find in this article:

In 2018/19, more than 36,000 homes across the UK were impacted by fire , a figure which serves as a stark reminder of just how vulnerable homeowners are to the threat of fire. 

In the immediate aftermath of a house fire, homeowners will face a number of critical decisions that could impact the outcome of their insurance claim. From preparing evidence to negotiating with loss adjusters , insurance claims can be incredibly stressful.

Having a Loss Assessor on your side can alleviate this stress and significantly increase the chances of receiving the full settlement entitled to you under the terms of your insurance policy. 

To illustrate this, we’ve compiled below some examples of fire insurance claims that Morgan Clark has successfully managed on behalf of its clients.

Fire insurance claim example 1: Cottage fire in Cambridge 

Mr and Mrs Hampshire suffered a fire at their thatched cottage in Cambridge after a lighter ignited in the middle of the night and quickly escalated. The fire service attended the scene and quickly extinguished the flames, however, the fire officer recommended a structural survey should be undertaken to check for damage to the roof. 

Mr and Mrs Hampshire appointed Morgan Clark to manage their insurance claim, which ensured the couple received fair compensation. There were initial concerns that the claim may not be covered due to conditions within the policy, but Morgan Clark provided adequate documentation for the claim to be accepted.

Morgan Clark, working alongside its team of building specialists, restored the property to a better than pre-fire condition. The family were also placed into alternative accommodation and received a large disturbance allowance payment while the restoration work took place. 

The final settlement was agreed at circa £100,000, which Mr & Mrs Hampshire were very happy with.  Read the full case study here .

Fire insurance claim example 2: Extensive damage to North Yorkshire home

Mr and Mrs Hall’s 4-bedroom home suffered extensive damage after a fire, caused by an electrical fault, engulfed the property. It took eight fire engines six hours to extinguish the flames, by which point the roof was completely gone.

Faced with a “very daunting and arduous” insurance process, Mr and Mrs Hall turned to Morgan Clark for help.

Morgan Clark took over the claim on behalf of the client and alongside Bedfords, a national firm of chartered building surveyors, prepared a schedule of work on the severely damaged property. 

With Morgan Clark leading the claim, Mr and Mrs Hall received a damage settlement of circa £185,000 and a second cash settlement of circa £50,000 for contents. The final settlements far exceeded the client’s expectations.

Read the full case study here . 

Fire insurance claim example 3: Underinsurance house fire claim

After experiencing a fire at his Somerset home, Mr Schroder faced underinsurance of 66%, which his insurance provider proposed applying to the settlement of the claim. Concerned with the prospect of dealing directly with his insurer, Mr Schroder contacted Morgan Clark for help, who promptly stepped in to manage the claim on his behalf. 

Morgan Clark liaised with the Loss Adjuster and a Chartered Surveyor was appointed, who prepared a schedule of work. Following an initial survey on the property, an agreement for underinsurance at 76% was reached. Morgan Clark felt this settlement was inadequate so instructed a second survey, which highlighted a more satisfying figure of underinsurance at 90%. 

The insurance company refused to award more than 76% underinsurance, so the claim was referred to the Ombudsmen for a final decision.

Mr Schroder accepted a cash settlement at a rate of 76% underinsurance for repairs while awaiting a decision from the Ombudsman. Meanwhile, Morgan Clark continued to liaise with the Ombudsman on behalf of Mr Schroder and eventually negotiated an underinsurance figure of 90%.

The final claim was agreed at circa £23,000 for contents and a further circa £320,000 for repairs – a result that Mr Schroder was very happy with. 

If you have experienced a fire at your home, Morgan Clark can help. Contact us today or visit our fire insurance claims page for more information. 

Can we help you with your claim?

Please complete these three basic steps so we can offer you advice based on the claim you are having to make and if it is something we are able to assist you further with.

1. About your claim

2. about the claim.

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This article was updated on 19th December 2023. The following workplace fire statistics have been compiled to shed light on the significant fire risks faced by UK businesses. All data was sourced from The Home Office’s most recently available fire statistics data tables, which include detailed information on incidents attended by the UK’s Fire and...

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We are authorised & regulated by the Financial Conduct Authority (FCA)

This means our clients are protected. You can trust the professionals managing your claim as we are regulated to the FCA’s strict standards and codes of conduct.

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Reference Number 309575

We will help you get back into your property as quickly as possible, ensuring you receive the full settlement you're entitled to

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The professional body representing UK Loss Assessors

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Fire Insurance-case Study

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BENEFITS OF FIRE INSURANCE AND CONSEQUENCES OF NONCOMPLIANCE IN GHANA: A CASE STUDY OF DANSOMAN COMMUNITY

The topic of the study is Benefits of Fire Insurance and Consequences of Noncompliance. This study was carried out to determine the level of public awareness of insurance benefits and to identify the reasons for non- compliance with fire insurance policies. Convenience sampling technique was used in the collection of data. The study indicated that electrical faults, carelessness, improper use of LPG gas and illegal connections cause fire outbreaks. Most Ghanaians do not comply with fire insurance policy; hence they do not know the benefit of fire insurance policy. Ghanaians do not comply with fire insurance policy due to inadequate education on fire insurance policies and their benefits, insurance companies not being reliable, lack of enforcement of the Insurance Act 2006, Act 724 section 184, and lack of interest in the fire insurance policy. Also the economy experiences unemployment, loss of property, loss of lives, decreases in output and low level of investment whenever there are fire outbreaks. The study revealed that the majority of Ghanaians are not aware of the Insurance Policy Act and its associated benefits. It is recommended that active education about the benefits of insurance and strict enforcement procedures should be followed.

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The studyexamined the extent to which market women demand microinsurance and also assesses the extent to which microinsurance institutions are mitigating the effects of fire outbreaks on the socioeconomic lives of women in the Kumasi Metropolis of Ghana. The study used both qualitative and quantitative analysis on the data gathered. The results showed 99% of the Market women did not take up microinsurance while 1% took microinsurance. The study further revealed that difficulty in accessing claims has been one of the major reason market women do not access microinsurance. Again, contrary to popular opinion about the informal section savings, this study showed, the informal sector particularly market women save to revamp their businesses in case of market fires. The study recommended that, microinsurance institutions need to use public education and moral suasion to boost patronage. At the same time, government must introduce legislation to encourage the informal sector to buy microinsurance.

Dr. Kofi Agyekum

In Ghana, the incidence of fire outbreak has become the order of the day, as there is no single day without news on fire outbreaks in some parts of the country. These fires affect different buildings. Knowing how to use installed facilities within buildings is very important in tackling fire emergencies. This study was conducted to assess the perceptions of occupants on fire safety preparedness in the Central Business District (CBD) of Kumasi. The key objectives set out were to assess fire disaster preparedness among occupants in the CBD, to assess the perceptions of the occupants on the causes of fire outbreaks and the use of firefighting equipment in the CBD, and to identify the measures which occupants feel should be put in place to control outbreak of fire in the CBD. The study adopted a case study research strategy. Empirically, the findings from the research showed that there is limitless fire safety preparedness among occupants in the CBD of Kumasi. The study recommends, that fire assembly points/emergency shelters, public education on fire safety, enforcement of fire safety policies, among others should be put in place to ensure that fire outbreaks are controlled in the CBD. Copyright©2017, Kofi Agyekum et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Professor (Associate) Francis Boadu

Insurance has a crucial role to play in every economy. In Ghana, there have been a number of disasters resulting in loss of life and property. This paper attempts to assess the life insurance industry in Ghana through a sample of 330 customers of life insurance companies operating in the Kumasi Metropolis. The study revealed that life insurance companies find it difficult to settle claim payment and subject customers to long processing period while some settlement end up in court. 70% of the customers do not received feedback after lodging complains. These insurance companies however collect their premium promptly

sekaayi huzayifa

Fire in learning institutions is a public concern because of the increased incidences, injuries and deaths of innocent immediate school stakeholders not to mention the destruction caused by the fire to the institution buildings such as the halls of residence and lecture rooms. Preparedness to fire disaster will help to minimize loss of lives, property and learning time. The purpose of this study was to investigate fire disaster preparedness in the UTM engineering faculty in Johor Bahru. The study was guided by the following objectives; to establish the adequacy of firefighting facilities in UTM engineering faculty in Johor Bahru, to determine the extent to which UTM engineering faculty buildings are constructed in relation to policy provisions pertaining to fire disaster preparedness, to establish how UTM engineering faculty has put in place fire safety plans as a measure of fire disaster preparedness, to determine whether UTM engineering faculty in Johor Bahru trains workers and students on appropriate responses in case of fire outbreak and to make recommendations from the study. The research adopted a descriptive survey design. The target population was the academic staff, supporting staff and students in all the six schools in UTM engineering faculty in Johor Bahru. Simple random sampling was used to give every subject an equal chance to be selected. Data were collected by means of questionnaires which were administered to the respondents through drop and pick method, and the site observation checklist. Data collected from respondents were analyzed through descriptive statistics. The results were presented using frequency tables. Basing on the study findings, majority of the respondents reported that a few specific firefighting facilities in schools were adequate and annually inspected contributing to a low level of fire disaster preparedness. In relation to faculty buildings and fire safety, in majority of the schools, lecture rooms are not congested, laboratories have two doors and all laboratory chemicals are properly stored, assembly points and all exit routes are well labeled. This indicated a high level of fire disaster preparedness. On safety plans, most schools have evacuation plans, but they have never used them. The fact that most schools have never experienced the use of the evacuation plans in the schools, shows that in case of fire disaster, the stakeholders may not benefit from them. Most schools do not remind the stakeholders of these plans and this means that the plans may not help them in case of a fire disaster. Most schools lack evacuation plans for vulnerable persons. All these are signs of fire disaster unpreparedness. On training in fire safety, most workers and students have not been trained on appropriate responses in case of fire outbreak and most of them may not know what to do in case of fire disaster leading to fire disaster unpreparedness. Basing on the study findings, the faculty management should consider adding more firefighting facilities like sprinkler system, reliable water supply, fire boots, suits, helmets, hoods, gloves, sacks of sands in buildings, fire blankets, fire fighters’ outfits, fire protective clothing, fire hydrants, fire escape ladder and self-contained breathing apparatus so that they become proportional to the number of buildings and people in the schools. It is also recommended that windows should not be grilled, and doors should open outwards. In addition, UTM engineering faculty stakeholders should be made aware of evacuation plans. Finally, all UTM engineering faculty stakeholders should be trained on fire safety. The researcher suggested that a similar study be carried out in other UTM faculties in Johor Bahru to check on fire disaster preparedness in the schools as cases of fire disasters are on the rise.

In Ghana, the incidence of fire outbreak has become the order of the day, as there is no single day without news on fire outbreaks in some parts of the country. These fires affect different buildings. Knowing how to use installed facilities within buildings is very important in tackling fire emergencies. This study was conducted to assess the perceptions of occupants on fire safety preparedness in the Central Business District of Kumasi (CBD). The key objectives set out were to assess fire disaster preparedness among occupants in the CBD, to assess the perceptions of the occupants on the causes of fire outbreaks and the use of firefighting equipment in the CBD, and to identify the measures which occupants feel should be put in place to control outbreak of fire in the CBD. The study adopted a case study research strategy. Empirically, the findings from the research showed that there is limited fire safety preparedness among occupants in the CBD of Kumasi. The study recommends that fire assembly points/emergency shelters, public education on fire safety, enforcement of fire safety policies, among others should be put in place to ensure that fire outbreaks are controlled in the CBD.

cuthbert zulu

Dr. Kofi Agyekum , Joshua Ayarkwa

Fire safety management plays an important role in enhancing the safety of buildings against fire outbreaks. The persistent increase in fire related issues amongst students' hostel accommodations calls to mind the role hostel management and occupants can play in order to ensure complete safety of lives and properties. Controlling fire outbreaks is associated with a lot of challenges. This study presents the results of a questionnaire survey which sought to assess the perceptions of students on challenges to fire safety management in multi-storey students' hostels around the Kwame Nkrumah University of Science and Technology campus. The findings from the study revealed that 'problems with electrical wiring and installations', 'inadequate water distribution systems', 'inadequacies in the fire departments', 'passive attitudes of owners/management towards housekeeping and maintenance', and passive attitudes towards personal fire protection' are the five critical challenges to effective fire safety management in the hostels. The results further showed that 'fire insurance policies', 'fire evacuation plans', regular maintenance and housekeeping', 'fire safety policies' and 'sanctions against those who disobey fire regulations', are all measures which when put in place can mitigate the outbreak of fire. Identifying the challenges to effective fire safety management and implementing the measures to control such challenges should assist in the control of fire outbreaks in students' hostels and other buildings.

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Policy-makers, development-practitioners, international organizations and academic scholars have over the years taken stern initiatives to tackle climate change issues. Climate adaptation along with various commitments and political will have given much weight to a growing concern of treating this global phenomenon with urgency. This study sought to determine the level of awareness and vulnerability to climate change and knowledge among coastal households and officials in Dansoman, within the Greater Accra Region of Ghana. The study adapted both qualitative and quantitative research strategies in data collection, analysis and presentation. Response from informants constituting officials from various institutions and vulnerable groups in the area were subjected to descriptive analytical statistics. Findings show high level of climate awareness among respondents but low level of knowledge on climate change issues. Results show that the majority of the respondents believe that climate change related issues and impacts are very serious and need Original Research Article Sarfo et al.; CJAST, 32(1): 1-14, 2019; Article no.CJAST.45659 2 urgent attention to avoid severe consequences on key economic sectors and food security. The researcher believes that the study will serve as a baseline exploratory study to inform decision on enhancing environmental education and campaign programs in the study area.

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An Assessment of the Awareness of Fire Insurance in the Informal Sector: A Case Study of Kumasi Central Market in Ghana

• Leo Moses Twum-Barima
• Published 2014
• International Journal of Economics and Empirical Research

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