Standard Fire Insurance

Fire Insurance and Your Homeowner Policy

Homeowner's insurance typically includes the Standard Fire Policy as a base for coverage. Often, insurance companies offer joint coverage to create a complete package policy including fire coverage and additional coverage like an endorsement for earthquake loss. Take the time to know what your homeowner's policy covers. Disasters like floods usually require a separate policy.

The Standard Fire Insurance Policy forms are often part of the homeowner's insurance package. Specific perils and endorsements outlining a risk or defining a peril are generally added to the Standard form.

165-Line Standard Fire Insurance Policy

The 165-line standard policy has four sections:

Declarations

This part of the form includes the description and location of property, insured amount and the name of the insured.

Insuring Agreements

The insuring agreements section of the fire insurance form includes the following information:

• Establishment of premium amount
• Obligations and responsibilities of the insured
• Actions the policy holder must take in the event of loss and resultant claim

Conditions

The conditions describe the issues which suspend or restrict coverage. This section may include language that holds the policy holder or insured responsible for reporting an increase in a hazard to the insurance company.

Another common condition outlines the requirements of the insured to mitigate losses in the event of a loss caused by a named peril. These means you are required to work quickly to keep losses at a minimum. Steps to accomplish this might include:

• Contacting a fire and smoke damage loss mitigation service
• Obtaining timely and accurate damage estimates
• Structural drying
• Arranging temporary power to prevent further damage
• Cleaning and decontamination of heating and air conditioning

Exclusions

Exclusions list perils that are not covered under the standard homeowner policy. This includes items such as:

• Fire or earthquake resulting from volcanic eruption
• The insured property is damaged from any process involving the application of heat
• Burning forests, bush, prairie, etc. and the clearing of lands (whether it's an accident or not)
• Riots, civil commotion, strikers or locked-out workers
• War, invasion or similar hostilities
• Mutiny, military or popular uprising or similar events that bring about the issuance of martial law
• Pollution or contamination not resulting from an insured hazard

Standard Fire Policy for Rental Homes

Another important consideration regarding insurance is whether or not you rent your home. A Standard Fire Policy usually covers the building including the foundation, but the renter's personal property is not covered. In this case, you may want to recommend that they look into purchasing renter's insurance. If you own rental property, Standard Fire Policy for rental homes insures the building and additional structures. Common coverage includes:

• Fire
• Windstorm
• Lightning

If you want to look for coverage that offers more personal liability protection, you can check with your agent to see what other endorsements are available to extend your coverage. Another factor that figures in with owning rental property is loss of rent. Some companies will add coverage for the loss of rent due to a named peril.

The Standard Policy covers specific named perils which means they will be clearly stated in the policy. Named perils might include specific risks. For example, if you live in an area known for intense summer storms you may want to list a direct lightning strike as a specific peril on your policy.

Are You Covered?

In most cases, homes are covered regardless of whether the fire originates from within the home or from outside the home. But don't take anything for granted. It's best to understand the coverage you have, be knowledgeable of your policy's limitations and know what is expected of you in the event your home is damaged. Keep your policies and important papers in a fireproof lock box or safe to protect them and so you'll have them on hand when needed.