Fire insurance coverage is generally divided into two categories: basic perils and additional perils. This policy strictly covers financial and property-related losses and does not provide compensation for bodily injuries.
With a fire insurance policy, your building, household contents, and stored goods are protected. Additionally, expenses incurred to prevent the spread of fire—such as the cost of fire-extinguishing equipment—may also be reimbursed.

Basic Perils Covered by Fire Insurance

Fire

Any ignition caused by the combination of a flammable substance and oxygen that results in flames is classified as fire. If your building or household belongings are damaged or destroyed due to fire, the insurer is responsible for compensating the loss. This is the most common peril covered under a fire insurance policy.

Lightning

Lightning occurs due to electrical discharge between clouds or between clouds and the ground. Such events can cause significant damage to buildings. Fire insurance covers losses resulting from lightning strikes.

Explosion

Any sudden release of energy caused by gas or vapor that leads to damage is considered an explosion and is covered by fire insurance. However, certain explosions—such as nuclear explosions—are excluded from coverage.

Losses NOT Covered by Fire Insurance

Fire insurance does not cover damages resulting from:

• War, riots, or civil unrest

• Nuclear or radioactive contamination

• Sonic waves

• Wear and tear or gradual deterioration

• Damage caused by insects or rodents