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    Question

    What is a Coverage protecting property against losses caused by a fire or lightning that is usually included in home owners or commercial multiple peril policies?

    A Finite Risk Reinsurance Correct Answer Incorrect Answer
    B Fire Insurance Correct Answer Incorrect Answer
    C Escrow Account Correct Answer Incorrect Answer
    D Earned Premium Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Fire insurance is property insurance covering damage and losses caused by fire. The purchase of fire insurance in addition to homeowner’s or property insurance helps to cover the cost of replacement, repair, or reconstruction of property, above the limit set by the property insurance policy. Fire insurance policies typically contain general exclusions, such as war, nuclear risks, and similar perils.

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