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A fire policy containing an average clause is ____________.

  • A fire policy containing an average clause is Average policy.
  • An Average policy is a type of fire insurance policy that contains an "average clause," which means that in case of under-insurance.
  • The policyholder will only receive a partial reimbursement of their losses, proportional to the amount of insurance they have taken out compared to the actual value of the property.
  • The purpose of the average clause is to encourage policyholders to adequately insure their properties to avoid being under-insured and receiving only partial compensation in the event of a loss.