Fire insurance is a contract whereby the insurer, in consideration of the premium paid, undertakes to make good any loss or damage caused by fire during a specified period upto the amount specified in the policy. Normally, the fire insurance policy is for a period of one year after which it is Lo be renewed from time to Lime. The premium may be paid either in lump sum or installments. A claim for loss by fire must satisfy the two following conditions:
(i) There must be actual loss; and
(ii) Fire must be accidental and non-intentional.
The risk covered by a fire insurance contract is the loss resulting from fire or some other cause, and which is the proximate cause of the loss. If overheating without ignition causes damage. it will not be regarded as a fire loss within the meaning of fire insurance and the loss will not be recoverable from the insurer.