Meaning of fire insurance

Fire insurance is most important type of insurance which provides the security against the risk of fire. In the history of fire insurance, it is said that first fire insurance was done in London. In fire insurance, there is contract between insured and insurer. The insured has to pay the premium at a fixed rate to insurer and insurer compensates the insured amount to the insured party if the property of insured is lost due to reason of fire. The insurer doesn’t compensate the insured amount if the insured property is damaged by less than the insured amount. The insurer doesn’t compensate more than insured amount even if the loss is estimated more than insured amount. The concept of fire insurance was developed before the concept of life insurance.