Fire insurance

Insurance is a contract by which one party for compensation called precious. Assumes particular risk of the other party and promise to pay to him or his nominee a certain amount sum of money on the specified contingency.in other words insurance is the day or means of getting the financial security against the certain types of risk that may occur in future. Different authors give the meaning of insurance in their own way according to their policy and rules they have a doped. But in simple sense insurance means a way or medium of reducing uncertainty of occurrences of on event. It is an investment from where we got certain return only when certain loss occurred from predetermined indent. Some basic characteristics of insurance are pooling of losses sharing the law of large number payment of accident losses risk transfer and indemnification.
     Among different types of insurance policy fire insurance is  one of them. Fire insurance is the absence of fire insurance the fire losses will be unsurpassed and it will affect the individual as well as the society. With the help of fire insurance losses which arise due to fire can be compensated. And the people will not suffer much. It is contract of utmost good faith. So proposer willing to buy fire insurance policy is under an obligation to supply detailed information regarding the subject matter to be insured. He /she should disclose all materials facts correctly and fully it is normally issued for one year. So it is renewed annually. Thus loss on insured property within specified period is indemnified by insurer. It is the worth noting that unlike a life insurance policy a fire insurance policy does not carry any surrender value or paid up value the assured must have insurance  interest in the subject matter both at the time of contract as well as at the time of loss so fire insurance is the insurance against any loss used to cover only damages to property caused by fire lighting or explosion previously however fire insurance policy covers the other perils such as storm tempest or flood riot malicious damage, burst pipes,  earthquakes aircraft ,evil commotion etc at present days so the insurance who suffers loss can only recover to the extent of the actual loss in a fire policy so feast does not. Exceeds the insured sum