Amount Subject

The amount of exposure in any one loss from the peril against which insurance is issued. Underwriters and company inspectors are responsible to see that the amount subject is in order. For example, in the case of fire insurance it is necessary to know the construction of the building, the fire protection afforded, whether a fire is likely to be confined to a small area or destroy the entire building, and if confined just what are the relative values in the areas most likely to be subject to fire. Attached and adjoining buildings and property must also be considered, both with respect to any possibility of there being a fire hazard to the insured premises and conversely whether insurance is carried by the same company on such property so that in the event of a fire at the insured's premises an adjoining or nearby building also insured in the same company may also be a loss thus increasing the amount of potential loss from a fire at that particular location.