Fire Insurance

Coverage protecting property against losses caused by a fire or lightning that is usually included in homeowners or commercial multiple peril policies.

Fire insurance usually includes damage from lightning; other insurance against the elements includes hail, tornado, flood, and drought. Before a mortgage can be advanced, the purchaser must have arranged fire insurance. A certificate or binder from the insurance company may be required on closing. Firm Offer An offer to buy the property as outlined in the offer to purchase with no conditions attached. Fixed Rate Mortgage A mortgage for which the rate of interest is fixed for a specific period of time (the term). Foreclosure A legal procedure whereby the lender eventually obtains ownership of the property after the borrower has defaulted on payments.

covers losses caused by fire, lightning and removal of insured property from the premises to prevent further loss. This coverage is referred to as property insurance and will also cover resulting water and smoke damage.