Here are the key features of fire insurance

  • Fire insurance is property insurance that provides additional coverage for loss or damage to a structure damaged or destroyed in a fire.
  • Fire insurance may be capped at a rate that is less than the cost of the losses accrued, necessitating a separate fire insurance policy.
  • The policy pays the policyholder back on either a replacement-cost basis or an actual cash value basis for damages.
  • Although some homeowners insurance policies include fire coverage, they may not be extensive enough for some homeowners.