Fire produces heat and light but either of themalone is not fire.

What is meant by fire insurance policy. A fire insurance is an agreement between two parties ie insurer and insured. 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. Standard Fire Insurance Policy is a traditional cover that offers cover against fire and allied perils which are named in the policy.

It is a cooperative device to share the loss. It relieves the insured from the horror of the fire losses to which he is exposed. Thus the fire insurer shifts the burden of fire losses from their actual victims over to all the members of the society.

Is fire covered by your homeowners or renters insurance policy. Section 2 61 of the Insurance Act defines fire insurance as follows. 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.

Lightening is not a fire but if it ignitessomething the damage may be due to fire. There is fire when something burns. A standard policy provides less coverage than a comprehensive policy.

The policy works under the principle of indemnity. Fire insurance policies cover damage caused by fire explosions earthquakes lightning water wind rain collisions and riots. Inother words fire means visible flames or actual ignitionSimmering smoldering is not considered fire in FireInsurance.

The valuation of assets is made according to the market value. This contract does not help in controlling or preventing fire but it is a promise to compensate the loss. The basic features of fire insurance include.