The time to ask the question, "What does fire insurance cover?" is not after your home has been ravaged by fire. You should know the details of your fire insurance coverage before disaster strikes to make sure you are adequately covered.
Traditional homeowner's insurance usually adequately covers your home and the contents in the event of a fire. Most policies cover your home regardless of whether the fire originates from within the home (such as with a cooking fire or electrical fire) or from outside the home (such as with wildfires or arson). Coverage may be limited depending on the original cause of the fire. If your home burns down because you decided to have a bonfire in your foyer, for example, this may not be covered by your policy due to your negligence.
If you reside in an area prone to fire, or if you simply want to have additional coverage above what is offered by your homeowner's policy, you can easily find insurers willing to issue riders specific to fire.
Additional Fire Coverage
The coverage you receive from fire insurance depends largely on the company issuing the policy and the particular coverage you choose. The more money you are willing to spend, the more coverage you will receive.
What does fire insurance cover? Typical policies include coverage for:
- Temporary housing while your home is being repaired or rebuilt.
- Costly contents from within the home which may not have been covered by a regular homeowner's policy.
- Clean-up assistance for the home.
Discuss any specific coverage requirements you have with your insurer. You can find virtually any fire coverage imaginable as long as you are willing to pay the premium.
Purchasing a fire insurance policy in addition to your existing coverage should not be incredibly expensive as long as you are not attempting to cover yourself from extraordinary circumstances. If you regularly host fire-eating contests in your backyard then you may find yourself paying quite a bit of money in order to fully cover your home with fire insurance. On the other hand, if you simply want additional coverage because your area sometimes experiences wildfires, you may not have to pay an exorbitant amount of money.
Preventative Fire Protection
Preventative fire protection activities are sometimes supplied by insurers to homeowners, especially to homeowners with expensive dwellings. For example, some insurers will take the initiative to disburse fire-retardant spray surrounding the perimeters of homes that are located in high-risk areas for fires. The insurance companies do not charge extra for these fire protection treatments, but instead consider the added expense a wise investment since the treatment itself costs much less than the replacement value of a home.
Not every insurance company offers these types of services, and you should not expect your insurer to take care of protecting your home from fire unless these services are specifically listed as a part of your coverage.
Ask the Question: What Does Fire Insurance Cover?
Do not assume that you are adequately covered with your homeowner's insurance, especially if you reside in an area prone to fire. Ask your insurer about the specific coverage you have to make sure you are fully covered in the event of a fire. You should have enough coverage to repair your home in the event of a small fire, just as you should have enough coverage to fully rebuild your home and replace all the contents if your home is completely overtaken by fire.
Fire Insurance for Cars, Boats, and Businesses
Fire insurance is not only for homes. You can purchase additional fire protection for both automobiles and watercrafts. Business owners may want to purchase fire insurance policies depending on their needs.
Before purchasing extra fire coverage for your car, boat, or business, you should first review the coverage you have to see if you are already adequately covered.