Fire legal liability insurance often is included in a third-party liability policy like a commercial general liability (CGL) policy with a small limit of liability. The CGL excludes damage to property in the care, custody or control of the insured. The fire legal coverage provides limited coverage for property in the custody of the insured, but only for damages caused by fire.

When a lease requires a $1 million policy in favor of the insured tenant and property owner, a CGL in that amount will provide the coverage requested but will only provide $50,000 in coverage for fire damage to the property in the care, custody and control of the insured.

In West Houston Airport Inc. v. Millennium Insurance Agency Inc., No. 14-10-00278-CV (Tex.App. Dist.14 08/25/2011), West Houston Airport Inc. (WHA) contended that the trial court erred by granting the motion for summary judgment by Millennium Insurance Agency Inc. (Millennium), believing Millennium erred by not obtaining $1 million in fire legal coverage as well as the CGL's basic $1 million limit.