Standard Fire Policy
What Does Standard Fire Policy Mean?
The standard fire policy, originally established in New York, provided coverage for property damage caused by fire and was later adopted by many states. Although it became largely obsolete with the introduction of more comprehensive property insurance policies, such as homeowner’s insurance, the standard fire policy significantly influenced the development of these modern policies.
Insuranceopedia Explains Standard Fire Policy
The standard fire policy was widely used in the United States during the early 20th century and remains celebrated for its precise wording. It specifically covered property damage caused by hostile fire—unintentionally started fires—as well as damage from lightning. However, it excluded damages caused by friendly fire, which refers to intentionally started fires. Additionally, the policy provided coverage for valuables removed during a fire and paid for repairs or even the reconstruction of damaged property.
Over time, the policy became obsolete as modern property insurance policies began covering fire damage along with other perils. Nonetheless, some states continue to adopt elements of this policy to this day.
