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Fire Insurance Contract Formation

Fire insurance is a type of property insurance that covers damage or losses caused by fire. It helps cover the cost of repairing, replacing, or reconstructing property above the limits of homeowners or property insurance. Fire insurance policies generally exclude risks like war, nuclear events, and similar disasters, and will reimburse the policyholder to repair or replace damaged property either at replacement cost or actual cash value.

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Anil Bhard Waj
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27 views2 pages

Fire Insurance Contract Formation

Fire insurance is a type of property insurance that covers damage or losses caused by fire. It helps cover the cost of repairing, replacing, or reconstructing property above the limits of homeowners or property insurance. Fire insurance policies generally exclude risks like war, nuclear events, and similar disasters, and will reimburse the policyholder to repair or replace damaged property either at replacement cost or actual cash value.

Uploaded by

Anil Bhard Waj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Q.

EXPLAIN FORMATION OF FIRE INSURANCE


CONTARCT?
ANS- Fire insurance is property insurance that covers
damage and losses caused by fire. The purchase of fire
insurance in addition to homeowners or property
insurance helps to cover the cost of replacement,
repair, or reconstruction of property, above the limit
set by the property insurance policy. Fire insurance
policies typically contain general exclusions, such as
war, nuclear risks, and similar perils.

 KEY TAKEAWAYS
Fire insurance is property insurance that provides
coverage for loss or damage to a structure damaged or
destroyed in a fire. Homeowner's insurance usually
covers fire damage but it 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 (ACV)
basis for damages.
FIRE INSURANCE CONTRACT

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