Coverage available from insurers in the Bahamas is
quite sophisticated and very much in line with what is available
elsewhere in the world.Fire & HouseholdFire and household policies will all contain the "Pro Rata Condition of Average" (commonly called the "Average Clause"), which requires the policy holder to insure for full values if he wishes to receive "full value" for any claim made for loss or damage caused by an "Insured Peril". Reinstatement, public authorities, and a variety of other clauses amending and/or extending the standard policy coverages are available. The possibility also existed that full cover from windstorm may not have been available to all properties to be insured. With the visit of Hurricane Andrew in August 1992 and Hurricane Floyd in September 1999, the Bahamas could no longer claim to be "specially favoured, as the last serious hurricane to hit major inhabited areas of The Bahamas previously was in 1929. Catastrophic PerilsBecause of a variety of factors, primarily the cost of reinsurance protection purchased by primary (or direct) underwriters who retail insurance to the general public, the inclusion of any of the "perils of Hurricane, Windstorm, Earthquake or Tidal Wave" (known as "catastrophe perils"), puts premium costs at the top level of the rates agreed by underwriters participating in the local market.
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