THE

LAW OF FIRE INSURANCE.

CHAPTER I.

OF THE NATURE OF THE CONTRACT.

1. General nature of a Policy of Insurance.

2. A clear right of action should be contained in it.

3. Parties interested to be inserted in it.

4. Indorsements and conditions of the Policy.

1. This contract is in the nature of an indemnity given by the insurers against such loss or damage by fire as may happen to the insured in respect of the houses, buildings, stock, merchandise, or other articles covered by the policy.

The insurers, after reciting the receipts of the premium, usually covenant and agree, or undertake, that from the day named in the policy unto and inclusive of another day named in the policy, and so long as the insured shall pay or cause to be paid the premium agreed upon, and the insurers accept the same, the stock and funds of the (company) shall be liable to make good any such loss or damage as shall happen by fire, (except loss or damage by fire happening by any invasion, foreign enemy, civil commotion, or riot, or any military or usurped power,) to the property specified.

Insurance being a contract of indemnity, must be founded on the existence of some property or interest, which is liable to be damaged or affected by the perils against which the insurance is made. Insurance does not cover a loss which is necessarily incident to the nature of the thing insured rather than occasioned by an adventitious cause, such as a loss by worms, or rats eating holes in the keel, or other parts of the vessel; or if goods are put on board the