YOU ASK:

What is the definition of Fire Insurance?

WE ANSWER:

Fire Insurance provides protection against losses resulting from an insured property being destroyed or damaged by fire. This is usually included in the homeowners insurance or from commercial multiple peril insurance. Fire insurance usually also covers fires caused by lightning.

The benefit payments that will be given depend on the type of policy. There are insurance policies that pay for the actual value of the property and there are some that pay the replacement value of the property. For replacement value, the insurance company will pay for the amount needed to replace the damaged property, less depreciation.

Your fire insurance coverage should be adjusted from time to time to account for increases and decreases in property values.

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