Fire insurance is a type of insurance policy that protects the policyholder in the event that their home or property is destroyed or damaged in a fire. Some other specified risks might also be covered by fire insurance, such as lighting, explosions, water damage from fire extinguishing sprinklers, or burst water pipelines or tanks. Fire insurance only covers accidental damage, however. As such, insurers will not cover property damaged by intentionally lit fires. Further, what damages or properties are covered and to what extent vary amongst different insurers and policies, so a beneficiary must always look to the specifics of their own plan.
[Last updated in August of 2021 by the Wex Definitions Team]