A standard policy provides less coverage than a comprehensive policy.

What is meant by fire insurance policy. Lightening is not a fire but if it ignitessomething the damage may be due to fire. Fire produces heat and light but either of themalone is not fire. It is a contract wherein the insurer guarantees to pay for the loss and damage happen to the property for the specified period of time normally the fire policy is a one year policy and renewable annually.

Also referred to as a basic or named perils policy. It only covers the risks to your home and contents that are named in your policy. Fire insurance is a device to compensate for the loss consequent upon destruction by fire.

The policy can cover the building including plinth and foundation plant and machinery stocks furniture fixtures. Standard Fire Insurance Policy is a traditional cover that offers cover against fire and allied perils which are named in the policy. This means under a fire insurance policy the insured will be compensated for the loss up to a certain limit subject to the maximum sum insured.

For example say your standard policy names fire. The term fire claim must satisfy. Fire insurance is a contract to indemnify the loss suffered by the insured.

The Standard Fire Policy is Section I-property coverage of. The term fire in a fire insurance is interpreted in the literaland popular sense. This contract does not help in controlling or preventing fire but it is a promise to compensate the loss.

Fire insurance policies cover damage caused by fire explosions earthquakes lightning water wind rain collisions and riots. It relieves the insured from the horror of the fire losses to which he is exposed. The valuation of assets is made according to the market value.