Commodities like wool, tobacco, etc. gain in weight due to the absorption of sea-water, therefore, in arriving at the sound value of the damaged cargo such increase in weight must be determined and deducted from the damaged weight. This may be ascertained by comparing the weight of sound cargo and the weight of the damaged cargo. If part of goods arrive sound then an comparison between shipped and delivered weights can be made. If the whole shipment is so damaged increase in weight becomes unascertainable. In such cases rules of Practice offer guidance. E-4: Allowance for water and/or impurities in picked cotton: When bales of cotton are picked, and the pickings are sold wet, the allowance for water in the pickings (where there are no means of ascertaining it) is by custom, fixed at one-third. There is a similar custom to deduct one-sixth from the gross weight of picking or country damaged cotton to take account of dirt, moisture and other impurities. E-5 Allowance for water in cut tobacco: When damaged tobacco is cut of, the allowance for water in the cutting is one-fourth if the actual increase cannot be ascertained.

Statute which modifies common law by allowing an Insurer to deny payment of an otherwise insured claim because of misrepresentation or breach of warranty only if that misrepresentation or breach contributed materially to causing the loss. These laws are known as ‘Increase-of-Risk’ Statues. Refer also “Contribute-to-Loss Statute.”

A damaged building may have to be upgraded to be repaired under building codes in force at the time of reconstruction. Building owners in such situations need guidance in buying insurance to cover this added exposure.

Insurance that covers the additional cost of reconstructing a damaged or destroyed building where ordinances require rebuilding with more expensive materials, services, or techniques.

Insurance that covers the extra expense associated with reconstruction, where the damaged or destroyed building must be rebuilt using more expensive resources. This is usually due to new ordinances.

Property insurance policies provide that coverage shall be suspended when the hazard in a risk is increased beyond that contemplated when the insurance was written. If a dwelling owner commences manufacturing dynamite in his home, the hazard is extremely increased, and coverage could be denied by the insurer if there were a loss.

A situation that places the insured or the insured property at a greater risk for loss. For example, if the insured begins storing explosives in his or her garage, the hazard has increased.

An insurance that presents some unfavorable feature.

This Insurance is on increased value by reason of market value of the goods at destination on the date of landing being higher than the CIF and duty value of the cargo and is subject to the same clauses and conditions as the Insurance on CIF value of cargo, and to pay 75% of the actual loss suffered in the market or realizable value of cargo not exceeding 75% of the sum insured because of operation of any of the perils insured against, after taking credit for claims recovered under the basic cargo (CIF value) and duty Insurance for the cargo. This Insurance shall, however, not pay any part of GA contribution or salvage charges arising from any casualty whatsoever. Increased value Insurance shall not be granted for more than 100% of the CIF value of the cargo, except in exceptional circumstances.