Doug Thompson, Real Estate Agent
Urban Nest Realty
Policy known as the 165-line policy because of the standard form used in most states. The policy is not complete, and additional forms and endorsements are added so that it can cover numerous direct and indirect risks. The Standard Fire Policy is Section /property coverage of most package policies such as the homeowners and special multi peril. It provides the foundation for property insurance coverages regardless of the form in which they appear. The Standard Fire Policy has four sections:
- DECLARATIONS description and location of property, insured amount, name of insured.
- INSURING AGREEMENTS premium amount, obligations of the insured, actions the insured must take in the event of loss and resultant claim.
- CONDITIONS describes that which suspends or restricts the coverage, such as an increase in the hazard with the knowledge of the insured.
- EXCLUSIONS perils not covered under the policy, such as enemy attack, including action taken by military force in resisting actual or immediately impending enemy attack.
Forms that can be added to a Standard Fire Policy include Dwelling Buildings and Contents Basic Form; Dwelling, Buildings and Contents Broad Form; general property form. Since the Standard Fire Policy insures only against fire and lightning, the extended coverage endorsement can cover the additional perils of windstorm, hail, riot, civil commotion, vehicle and aircraft damage to the insured property, explosion, and smoke damage. A vandalism and malicious mischief endorsement can also be added.