• Fire insurance is property insurance that provides additional coverage in the event of loss or damage to a building damaged or destroyed by fire.

  • Fire insurance may be limited to a rate that is less than the value of accumulated losses, requiring a separate fire insurance policy.
  • The policy reimburses the policyholder for damages either on a replacement cost basis or on an actual cash value basis.
  • Although some homeowner insurance policies include fire insurance, they may not be comprehensive enough for some homeowners.