Does Homeowners Insurance Cover Fire

Short Answer: Yes, accidental and environmental fires!

When absolute disaster strikes and there’s a house fire, it’s going to typically be your homeowners insurance that will kick in to help with repairs, replacement, potential temporary relocation, and recouped losses. You won’t usually have specific fire insurance’ involved outside special circumstances. We’ll go through the different types below, as we help you answer the question, “Does homeowners insurance cover fire?” Yes. And the ugly truth is that it can happen. The good news is that all across the nation, when this happens people are greeted by an outpouring of help from local services, nonprofit organizations, and more. Did you know fire and related damages are one of the most common reasons for severe claims in the U.S.? Recent statistics put the number at 35% of all insured homeowner losses come from fire in this country. That being said, please, be completely aware of what your homeowners insurance policy will do if this disaster were to occur. Let’s dive right in.

5 Types: Homeowners Insurance Fire Coverage

First, you should have a basic understanding of the five different types of homeowners insurance in relation to fire that is covered (more on this in the next section).

o Dwelling Coverage: What happens if your home is a total loss? Dwelling coverage handles the costs of rebuilding the home.

o Other Structure Coverage: Let’s say the house is spared, but you lose a separate garage on the property, perhaps a barn, substantial greenhouse, fencing, or shed. All of these may be covered under your policy.

o Personal Property Coverage: When fire strikes, it typically destroys everything it touches. Furnishing, electronics & computers, clothing, furnishings, etc. There’s a relatively long list of things that will be counted as personal property.

o Loss of Use Coverage: Whenever you’re displaced from your home because of fire or disaster, like you need to stay in hotels with your family while it’s being rebuilt.

o Personal Liability Coverage: In the event that someone files a legal claim against you, as the homeowner, as a result of the fire, personal liability will have coverage to offer.
does homeowners insurance cover fire

What Types of Fire Will My Policy Cover?

Before looking at the list below of the types of fire your homeowners insurance policy will likely address and cover, ask yourself which one you think is the most common. In fact, it’s not just common, but accountable for close to HALF of all domestic house fires.

_ Candle Fires (Accidental): Unfortunately, both candle and accidental fires happen too frequently. Often it’s because the candles are forgotten about or they’re knocked over without anyone knowing (by a pet or child).

_ Grease (Cooking) Fires: Another regular cause of domestic house fires is cooking, and it’s not always when people are around or they forget to turn off the stove. Whatever the reason, no one intends to burn the house down when putting together a meal.

_ Electrical Fires: Most often associated with the winter, during freezing cold temperatures, or in the depth of the summer when HVAC units are in full swing. Short circuits, sparks, and power surges can happen where no one’s around to see them.

It’s cooking. Of the roughly 400,000 house fires every year, around half take place because of open-flame cooking, intense heat someone forgot to turn off before leaving the house, cooking oils and tools catching fire, etc. Be careful.

homeowners insurance fire

When Isn’t Fire Covered By My Policy?

This section is really simple, because in most cases there will only be two circumstances where fire will not be covered by your homeowners insurance policy. Let’s take a second to go through those.

1. Intentionally Set (Arson): It goes without saying, if it’s found that you set your home on fire for some reason, it’s highly unlikely your homeowners insurance is going to cover any of the damage caused to anything. You’ll be held fully legally and financially liable.

2. Environmental Considerations: This has everything to do with your location and how prine the area is to wildfire. As an example, along the west coast there are areas whee it’s much more difficult to get basic wildfire coverage because unfortunately it’s become too common. Don’t forget to iron out the details with your provider.

Finally, when answering the question, “Does homeowners insurance cover fire?” see to it you have a clear understanding whether you have Replacement Cost Value-based covered (RCV) or Actual Cash Value-based coverage (ACV).