Question

Explain the following term/concept.

Fire insurance

Answer 1

Fire insurance provides protection against the risk of damage to property by fire. Any property which is subject to damage by fire can be insured. The loss due to lightening and explosion is also covered under fire insurance. The types of fire insurance policies are valued policy, average policy, specific policy, floating policy, excess policy, reinstatement policy, comprehensive policy, consequential loss policy and sprinkler leakage policy.