Question

From the following, which loss is covered by under Fire Insurance?

• A. Its own fermentation
• B. Loss by explosion
• C. Loss by underground fire
• D. Loss caused by water used to extinguish fire

Hint:

Fire insurance covers direct and immediate consequential losses caused while fighting the fire.

Answer 1

The Correct Option is D

Fire Insurance covers not only the direct loss due to fire but also certain consequential losses.
Losses caused by reasonable steps taken to control or extinguish fire are also covered.
For example, damage caused by water, foam, or chemicals used by firefighters is a valid claim under fire insurance.
However, losses due to its own fermentation or spontaneous combustion are generally excluded unless specifically covered.
Similarly, explosions may be covered under separate policies unless they are a direct consequence of fire.
Underground fire is also excluded unless specifically included.
Therefore, out of the given options, loss caused by water used to extinguish fire is covered under a standard Fire Insurance policy.