Fire insurance is a type of property insurance that covers damage and losses caused by fire. It is included in most homeowners insurance policies and can also be purchased as a standalone policy. Fire insurance covers the cost of repairs and replacement if your property is damaged by a fire. Here are some key elements of fire insurance:

• Fire insurance covers losses or damage to a structure damaged or destroyed in a fire.
• Fire insurance in a standard homeowners policy may be capped at a rate that is less than the cost of the losses accrued.
• Fire insurance can pay the policyholder on either a replacement-cost basis or an actual cash value (ACV) basis for damages.
• Fire insurance policies provide payment for the loss of use of the property as a result of a fire. They also often provide additional living expenses if the fire caused uninhabitable conditions. Finally, they provide for damage to personal property and nearby structures.

Although homeowners insurance policies typically cover losses from fire, they don’t usually cover fires that result from nuclear disaster, radiation, war, or arson. Fire insurance policies also have exclusions, such as damage caused by intentional fires or excluded perils like floods or earthquakes. The cost of fire insurance depends on how much coverage you need, where you live, and what your deductible is.