Fire insurance policies are different types of insurance coverages that compensate any losses incurred due to a fire breakout with a sum assured. These types of insurance policy usually provide a significant amount of coverage to help both individuals and companies to reopen their places after incurring extensive damage due to fire. These insurance types cover war risk, turmoil, riots losses as well. Fire insurance has been designed to reimburse the cost of repair, reconstruction or replacement of the property damaged or destroyed in a fire. Besides, fire insurance also covers property loss or damages due to smoke, water and damages caused by the firefighters.
The difference between Fire Insurance and Home Insurance is that fire insurance compensates for damage caused by fire, lighting, Thunder and Smoke. Which happens only due to fire. While, Home insurance covers damages due to natural calamity, Manmade Disasters