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.