Which of the following is covered by the Basic Fire policy?

• A. Loss to goods caused by a process involving the application of heat.
• B. Damage to an electrical device caused by a short circuit.
• C. Fire damage caused by a fire which followed a short circuit.
• D. Damage to property as a result of radioactive contamination.

Answer: (C)

Basic Fire policy covers loss or damage caused by fire. If a short circuit starts a fire, the resulting fire damage falls under the policy because the insured peril is the fire itself, not the exact cause that started it. The other options describe losses that aren’t fire damage: damage from a heat process isn’t necessarily fire, direct damage from a short circuit is an electrical fault rather than the fire, and radioactive contamination isn’t covered by a basic fire policy. So the fire damage that occurred after a short circuit is the one that fits the covered peril.