Fire Insurance Policy in Homeowners Insurance

Fire Insurance Definition

Typical homeowner’s insurance companies offer fire insurance cover. Fire Insurance is a type of property insurances that covers losses and damages caused by unexpected fires. Though some homeowner’s insurance policies have fire protection, homeowners can purchase additional fire insurance coverage. The separate additional fire coverage is more comprehensive and covers reconstruction, repair, and replacement costs of property exceeding the homeowner’s insurance policy limit. Fire protection policies do not include some circumstanced, such as nuclear risks or war. A fire insurance policy provides policyholders with coverage against damage or loss of their insured property, both to its interior and exterior. Fire insurance policies may also cover injuries sustained due to fire while on the insured property, for example, in the case of a fire explosion. Mortgage lenders may need a property to have a fire insurance property as one of their lending terms. When it comes to homeowners insurance, a homeowner may have various questions, including does homeowners insurance cover mold, the truth is for a fire insurance policy on its own, it only covers fire; however, you can read more about home insurance to get more insights of what homeowners insurance covers. This article discusses what fire insurance policy in homeowners insurance covers.

Fire protection covers you against fire damage and losses emanating from several sources.
These include fires originating from gas explosions, electricity due to faulty wiring, and fire caused by natural disasters like lightning. Most insurance policies cover one against fire regardless of whether the fire came from inside or outside the premises. The coverage limits depend on the cause of the fire. The insurer compensates the policy bearer for either an actual cash value or replacement cost basis for the damages.

The insurance policy typically offers a market value reimbursement for lost belongings, with the total payout being covered according to the home’s overall value. If a home is insured for $500, the contents are typically covered for at least 50{45d5bd0deb6b1c16dacf6b0ec94542274be453ffe9be3104ffca490377e77755}-70{45d5bd0deb6b1c16dacf6b0ec94542274be453ffe9be3104ffca490377e77755} of the policy value. Many policies usually limit reimbursement of luxurious items such as jewelry, gold, paintings, and fur coats. Therefore, a policyholder should evaluate a home’s value annually to determine whether there is a need to increase coverage. But a policyholder cannot purchase an insurance cover higher than their home’s actual value.

 Some homeowners insurance companies provide a standalone fire insurance cover for expensive and irreplaceable items not covered in standard fire insurance. While fire can be included in your homeowner insurance policies, it may not be as comprehensive as the standalone fire insurance policy is. Homeowners may purchase a separate fire coverage policy if the property contains expensive items that cannot be covered in the standard coverage. 

Fire insurance covers the costs resulting from loss of use of the insured property because of a fire incident. It also provides payments for additional living expenses caused by uninhabitable conditions and damage to the insured property and surrounding structures. Homeowners should take inventory of the property and its contents to necessitate an easy assessment of the extent of damage and losses in the event of a fire. A fire insurance policy has additional coverages against water damage due to fire which are usually effective for one year. Homeowners generally renew fire insurance policies under the same terms and conditions as the original policy.

Most renters and homeowners have adequate coverage against fire losses and damages through a standard renters or homeowners insurance policy. But for people living in areas prone to fire, it may be inevitable to acquire a separate fire insurance cover to protect their properties against unexpected fire occurrences. Fire damages and losses are covered even if the cause of the fire is not included in your policy. Suppose an earthquake that is not covered under fire insurance policies knocks down an electrical transmission line and sets your home on fire. You will still be able to file a claim and be compensated according to your policy. Most of the damages caused at home in a fire are due to smoke defacing furniture, walls, and other belongings.  A fire insurance policy also covers these.

Homeowner’s insurance policies may not cover all types of fire losses or damages. For instance, if you set your home on fire deliberately, definitely your policy company will not reimburse you.  House owners should be responsible enough to prevent any occurrence of fire in their homes even if they have insured it. You can fix smoke detectors and fire extinguishers to avoid or reduce the extent of damage in the event of a fire.

In conclusion, fire accidents can be catastrophic, leading to unrecoverable losses. Thus all homeowners should purchase a fire protection policy from their homeowners insurance company.