When does insurance coverage under a fire policy typically expire?

• A. 12:01 a.m. Standard Time at the location of the property insured
• B. 12:01 a.m. Standard Time at the address of the named insured
• C. A time specified in the policy documents
• D. Midnight the day the policy is canceled

Answer: (B)

Insurance coverage under a fire policy typically expires at 12:01 a.m. Standard Time at the address of the named insured. This specification provides a clear and consistent moment in time for the expiration of coverage and is a standard practice in insurance contracts. It ensures that all parties know exactly when coverage ends, which can be crucial for activities such as property claims or loss assessments.

The emphasis on the named insured's address rather than the location of the property or a specified time in the policy helps to avoid confusion, ensuring that the expiration aligns with the insured's specific circumstances. If the policy were to state expiration based on a different criterion (like location-specific time), it could lead to complications and misunderstandings regarding the effectiveness of coverage.

Throughout insurance, stipulating times in established terms is vital for clarity, and recognizing the named insured's address ensures that all involved in the contract understand the effective timing of their coverage.