Machinery and Electronic Equipment Insurance
This information document only specifies the main aspects of the insurance, such as what is included and what is not. It is not an exhaustive list or a personal overview of the insurance that customers choose. The information document has no legal significance and is intended solely to inform customers about the main aspects of the insurance. The insurance summary and detailed information on the applicable contract terms are available on the insurance policy, which can be accessed on Vörður’s My Pages. The terms and conditions of the insurance contain comprehensive information about the insurance coverage and are a part of the agreement between the parties together with the insurance certificate.
What type of insurance is Machinery and Electronic Equipment Insurance?
This insurance is a combined policy for machinery and electronic equipment and includes breakdown insurance and fire insurance. Additionally, three optional coverages are available for an extra premium.
What Is Covered?
Loss or damage to the insured equipment due to breakdown or mistakes during use.
Loss or damages to the insured equipment caused by fire, lightning, or explosion.
Loss or damage to insured equipment due to water that suddenly and unexpectedly flows from the plumbing system in the building and originates from within the walls of the building due to mistakes or breakdowns.
Theft and damage to insured equipment during unlawful entry.
Loss or damage to the insured equipment caused by bad weather, that is when the wind exceeds 28.5 m/s according to the measurement of the Icelandic Meteorological Office.
What Is Not Covered?
Loss or damage, for which the manufacturer, seller, repairer, or transporter is responsible according to contract or by law.
Loss or damage due to incorrect assembly.
Loss or damage resulting from work with explosives during construction.
Loss or damage to equipment that is in a basement unless it is on at least 10 cm high foundations that do not absorb moisture.
Loss or damage, which occurs as a result of unlawful entry or attempted unlawful entry by the insured’s employees or when employees are a participant (complicit) in such an unlawful entry.
Are There Any Restrictions or Precautionary Rules?
The insured is required to comply with Vörður's precautionary rules.
The insured must do everything reasonably necessary to keep the insured equipment in good condition and ensure that it is not operated under excessive load.
The insured must ensure that items are not exposed to fire or heat hazards.
The insured must ensure that pipes and fixed equipment are well maintained.
The insured must ensure that doors and other entry points are securely locked, and that windows are closed and latched when the insured location is left unattended.
The insured must ensure that insured equipment stored in basements is placed on raised racks and that the area has floor drains.
Where is the insurance valid?
The insurance covers the insured items while they are at the insured location specified on the insurance certificate.
What Are the Insured's Obligations?
Provide all necessary information, whether at renewal or when making changes to the insurance.
Provide Vörður, if needed, access to the insured premises to inspect the property and its condition.
Report any damage as soon as possible and no later than one year after the incident.
When and How Is The Insurance Paid For?
Premiums must be paid on the due date. Vörður sends payment requests monthly to online banking, or annually if the customer prefers to pay the full premium in one installment. Payment methods can be changed on Vörður’s “My Pages.” Premiums can also be paid by credit card. Premiums are a statutory lien on the insured property and take priority for two years over all other claims on the property, except government taxes.
When Does the Insurance Coverage Begin and How Does It End?
Insurance contracts generally apply for 12 months from acceptance of the offer and issuance of the policy, and premiums are based on an annual rate. If the insurance is not cancelled during this term, it is automatically renewed.
How is the Insurance Terminated?
The insurance can be cancelled at any time during the insurance period.