Fire Insurance Standard Fire Policy


Definition of "Fire insurance standard fire policy"

Mary Beth Lynch real estate agent
Mary Beth Lynch, Real Estate Agent RE/MAX SUBURBAN

The fire insurance term is a policy used in property insurance that ensures any damage or loss that was a result of a fire. Most affordable home insurances cover fire insurance but other types of policies are also available for homeowners if they want additional coverage.

The standard fire policy is also referred to as the 165-line policy. This name comes from the 165 number of lines on the page, the standard form that is used in most states. The policy usually ensures against fire damage to the property and other related perils that are completed in the policy. The standard fire policy is not a complete policy, which means that other forms can be connected to it so that it can cover more direct and indirect risks. 

The Standard Fire Policy is a simple agreement between two parties where one is the insurance company and the other is the homeowner. In this type of fire policy the Section I ensures coverage for the property against perils that are selected from its list. The safest option is all risks which will cover expenses in any types of perils. HOA’s use these types of fire insurance policies because they are standard, easy to understand, and affordable. Other types of endorsements can be added if you need anything special covered as well.

There are four sections in the standard fire policy:

  1. Declaration - which goes over the location of the property and the description of the home, the name of the insured, and the premium plan.
  2. Agreements and guidelines of the policy - this is where the premium amount is mentioned as well as the responsibilities and obligations of the insured. The most important part for the insured is the steps that must be taken in case of loss, damage, and a resulting claim.
  3. Conditions of the policy - these can suspend or limit the coverage of the policy, that can happen in case a risk factor increased and the insured is aware of the change.
  4. Exclusions of the policy - here is where the risks that are not covered by the policy are mentioned.

Some of the forms or endorsements that can be added to a standard fire policy are risks of windstorms, disruptive hail, civil unrest or rioting, or if a vehicle or airplane causes any damage to the property, explosions, or damage caused by smoke. In California, however, standard property insurance does not cover wildfires, and in Florida, it does not cover hurricanes. For this, insurance companies offer hazard insurance that covers natural disasters among other things. The insurer can also add vandalism and malicious mischief endorsement. 

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