A glossary of commonly used general insurance and risk management terms.

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FAIR MARKET VALUE – The price that a willing buyer would pay a willing seller, neither being under any compulsion to sell or buy.

FIRE – Combustion sufficient to produce a spark, flame, or glow and which is hostile (as opposed to friendly – i.e., not in the place where it is intended to be, such as in a furnace.)

FIRE INSURANCE – Coverage for loss of or damage to a building and/or contents due to fire.

FIRE RESISTIVE CONSTRUCTION – A building, which has exterior walls, floors, and roof constructed of masonry or other fire-resistive materials.

FLOATER POLICY – A policy under the terms of which protection follows moveable property, covering it wherever it may be.

FLOOD INSURANCE – A form of insurance designed to reimburse property owners from loss due to the defined peril of flood. Can be added as an extension to an All Risk policy.

FORGERY – In general, any false writing with intent to defraud.

FORM – An insurance policy itself or riders and endorsements attached to it.

FORTUITOUS EVENT – An unforeseen accident.

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