In standard fire policies, what type of losses are covered?

In standard fire policies, direct losses are covered because these policies are designed to provide compensation for damages that result directly from fire incidents. A direct loss refers to the destruction or damage to property caused by the fire itself, such as damage to a building or personal belongings within that structure.

These policies typically do not extend their coverage to indirect losses, which might include things like the loss of income due to business interruption caused by the fire. Additionally, they do not cover losses attributed to negligence, as these types of damages usually fall under separate liability insurance provisions rather than standard fire coverage. Hence, the focus of standard fire policies is primarily on the immediate effects of a fire, specifically the direct damage to insured property.