FLOATING POLICIES. 227 



181. Conditions in Fire Policy. — The usual conditions are 

 — that the insurer shall not be liable for loss arising by- 

 foreign enemy, or military or usurped power, such as riot, 

 tumult, or civil commotion, and that he shall give notice of 

 any other insurance effected on his horse. 



182. Floating Policies. — Horse dealers, auctioneers, and 

 others frequently effect a general or floating policy applic- 

 able to all the live stock, carriages, or other goods that may 

 be in their stables or steading. The owner of the horse 

 cannot sue on such a policy, if it be not taken in his name ; 

 but the insured may sue, if he can show that by his usual 

 course of dealing or usage he is liable to the owner for the 

 animals. (rt) The liability under a policy upon "live stock 

 in premises" is not avoided by the fact that the horse 

 killed was not assured when the policy was issued, but 

 was afterwards acquired by the insured in exchange for 

 others on the premises. (6) 



Fire policies are not valued policies. They limit the 

 amount of loss recoverable ; but they do not measure the 

 liability for loss ; the amount of the loss must be proved, (c) 

 The underwriter pays, not for what has been expended, but 

 only for what is lost to the amount of the sum insured, 

 which may be ascertained amicably, judicially, or by arbitra- 

 tion. Frequently an option may be reserved to the insurer 

 to pay the loss or re-instate, (c?) and the impossibility of ful- 

 filling the obligation to re-instate after election is no defence 

 to the company, (e) In the case of a " floating policy," the 

 loss recoverable is usually limited by the policy to not more 

 than a certain sum for each animal destroyed. 



(a) B. Pr. 517. As to insurable interest, see § 177. 



(6) Mills V. Insurance Company, 37 Iowa, 400, cited in Lawson's Rights, 

 Kemedies and Practice, v. § 2206. 

 (c) B. Pr. 515. 



{(l) Sutherland v. S^in Fire Office, 1852, 14 D. 775. 

 (e) Brotvn v. Royal Insurance Company, 1859, 1 E. and E. 853. 



