Have you ever really thought about what would happen if you lost your home in a fire?

“It will never happen to me.”
“Gosh, I hope everything is OK.”
“If we get through this, I’ll be more prepared, I promise.”
The first thing you must do is make sure you have adequate insurance coverage.

Causes of loss are the perils of the policy. Fire is a peril. The peril of fire has been defined by the courts as “oxidation sufficiently rapid to cause a flame or glow.”

Friendly fire, which is a deliberately ignited flame or glow that stays within its intended confines, such as fire within a heating, cooking or lighting unit.

Hostile fire is fire that escapes its intended confines. For example, a log rolls out of the fireplace or a hot ash falling from a cigarette.

Property insurance policies are generally written on a Basic Form, Broad Form or Special Form basis.

The Basic Form – the most limited

The Special Form – the most comprehensive.

The named peril FIRE is covered under all three types of policies.

Named Perils: Basic Broad Special

Fire X X X

Direct losses are losses that are the direct physical result of an insured peril. Fire (including water to extinguish it) is an example of direct losses. It is the type of loss that has actual physical damage to the property or the actual loss of the property.

Indirect or consequential losses are losses that are the result of a direct loss. For example, if an individual’s home or business was damaged by fire (a direct loss), that individual or business owner would incur the consequential loss of renting another place to reside or conduct business.