Fire insurance is the insurance that offers coverage against damage or loss due to fire. it is the insurance obtained by owner of homes and commercial properties to provide reimbursement in case of losses resulting from fire. Such insurance is supplied in exchange for the payment of a premium.
E.R. Hardy:-
" Fire insurance in which the sun insured become payable on the happening of a fire."
The basic fire-insurance policy covers losses resulting directly from damage or destruction by fire or lighting. The first scientific system of obtaining funds to compensate for fire loss was developed after the great fire of London in 1666, which devastated some 13,000 buildings. In the system inaugurated the following year by the London merchant Nicholas baron, small sums of money were collected from many individuals, and a fund was established for compensation of the losses sustained by the few whose property subsequently was destroyed by fire.
Fire insurance first developed during the late 1600s and grew along with the rise of crowded industrial cities, where small fires could quickly spread and cause extensive damage and destruction. In the great chicory fire of 1871, depicted here, flames destroyed 10 sq km ( 4 sq mi) of central chicory.
The first effective fire-insurance company established in the United states was the Philadelphia contribution fore the insurance of houses from loss by fire. which is still in operation. It was organized in 1752 by Benjamin Franklin. the use of fire insurance become widespread during the 19th and 20th centuries.
The standard fire insurance policy in the U.S. was adopted in New York State in 1943. It become the prototype of such policies in most other states either through statute or through regulation by state insurance departments. The resulting standardization has helped to reduce litigation on disputed claims by making the insurance coverage more understandable to the policyholder and by simplifying adjustment of losses.
In the early 1900s, insurance companies in the U.S. first offered, for an additional premium, to extend the coverage of fire insurance policies to other perils by use of an endorsement on the policy. By the late 1920s these additional perils were incorporated into a so called extended coverage endorsement. Extended coverage at present includes the perils of damage by windstorm, hail, explosion, riot, strikes, civil commotion, aircraft, vechicles and smoke. The endorsement may also be extended further.
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