Question

13. Bret obtains a fire insurance policy on his rental house with Continental Insurance Company. Like all insurance, this policy is an arrangement for

Answer 1

Answer:

Like all insurance, this policy is an arrangement for protecting against financial loss arising from loss of financial value and interest as a result of the peril insured against.

Fire Insurance is a policy that falls under the general insurance(Non-life insurance). It is a policy which provide cover on any subject matter(house, office, farm etc). Basically, the policy provide financial indemnity to the policyholder as a result of financial loss caused by Fire peril to his of her property insured. The Fire Insurance is known to cover 3 main peril, they are Fire itself, Lighting and Explosion of domestic gas.