What does a fire insurance policy generally cover?

A fire insurance policy is designed to provide coverage for both buildings and personal property against loss or damage caused by fire. This type of policy protects not just the structure of the building itself but also the belongings within, such as furniture, electronics, and personal items that are at risk in the event of a fire. The coverage typically includes damage from additional perils that may arise in conjunction with a fire, such as smoke or water damage from firefighting efforts.

While some options may focus exclusively on buildings or personal property, the comprehensive nature of fire insurance reflects the reality that homeowners and renters are concerned about the overall risk to their property. Liability coverage is generally not included in a standard fire insurance policy, as that falls under general liability insurance, which protects against claims of bodily injury or property damage that occurs on the premises. This distinction highlights the specific purpose of fire insurance in safeguarding against the financial losses associated with fire incidents.