From its beginnings to the present, fire insurance has been transacted according to the named perils principle. Proceeding from the needs of developed markets, at the end of the twentieth century this class of insurance has started to expand according to the all risks principle. To put it simply, all causes of fire are covered this way, except the ones that are explicitelly excluded. Market practices in a number of parts of the world refers to the effectiveness of the relatively new approach of taking out insurance. This approach has been practiced in Serbia for less than a decade. Findings from this graduation thesis show that in time to come we can expect modernisation of fire insruance to a greater extent in this country. Also, it will be similar to that in the modern world.