General insurance or non-life insurance policies, including automobile and homeowners policies, provide payments depending on the loss from a particular financial event. General insurance is typically defined as any insurance that is not determined to be life insurance.
Fire insurance is property insurance that provides coverage for loss or damage to a structure damaged or destroyed in a fire. Homeowners insurance usually covers fire damage, but it may be capped at a rate that is less than the cost of the losses accrued, necessitating a separate fire insurance policy. The policy pays the policyholder back on either a replacement-cost basis or an actual cash value (ACV) basis for damages.
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