Meaning of Fire Insurance

Fire can destroy home and other property within an actions. So, fire insurance is a method of safeguarding property. Fire insurance is a contract of indemnity between the insured and insurer. The insured should pay premium for the definite period. The insure gets all the premiums paid as its income. Insurance companies provide reimbursement in case of losses resulting from fire. Fire insurance compensates losses caused by fire. Basically, insurance is meant for the compensation of loss, and not for the prevention of loss. Insurance helps a person to safeguard himself from the loss of fire.