A fire map is a map that displays the locations of properties for which an insurance company has provided fire coverage. These maps allow these companies to see exactly where their risks are located and help them plan to prevent catastrophic losses.
An insurance company's risk increases if it has many fire policies covering buildings that are next to each other, since a fire in one property could spread to adjacent buildings.
Fire maps show insurance companies exactly how clustered their risks are. If they determine that they already have too much risk in one location, they may avoid increasing it by rejecting applications for fire coverage in that area.
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