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Continuing Education

What Does Homeowner's Insurance Cover in the Event of a Fire?

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Will your homeowner’s insurance grant you the full assistance you expect in the event of a life-changing fire? Many homeowners are woefully in the dark regarding fire insurance coverage limitations. Protect your home and family by ensuring you have the protection you’ll need in place in advance.

Is Fire Insurance Covered in Homeowner's Insurance?

Most insurance policies typically cover damage from perils including fire, wind, hail, lightning, theft, and vandalism. (*It is important to note here, however, that some insurers do NOT include coverage in areas where wildfires are common.) What is the definition of "perils" in insurance? A specific risk or cause of loss covered by an insurance policy – of which there are different types: All-risk, with coverage for all losses except those specifically excluded; Named-perils, where coverage is only included for those perils specifically noted on the policy; and packaged-policies, those with coverage for multiple (but typically not all) perils. There are many different kinds of policies, as well as the added confusion of state laws and rules. Despite this confusion, it is essential to uncover what’s excluded from your policy and purchase supplemental coverage in the event your home and family are at risk.

What’s NOT Covered?

Commonly excluded coverages include mold, sewer backups, sinkholes, earthquakes, and termites. Don’t learn about exclusions the hard way. Verify your specific coverage, considering those additional perils you may face - and if they warrant additional coverage.

What’s IS Covered in the Event of a Fire?

Most homeowner’s insurance will cover your structure and contents in the event of a fire, however, limits and deductibles vary widely from policy to policy, again making it essential to fully understand your coverage before disaster strikes. Typical coverage includes…

  • Dwelling
    The cost of repairing or rebuilding your home, including wiring, plumbing, and HVAC equipment. However there is a limit – and you must ensure enough coverage to cover rebuilding costs, raising coverage as necessary.  
  • Other structures
    Covers damages to detached structures, like garages, storage buildings, and fences. 
  • Personal property
    Provides reimbursement for personal items lost, such as clothing, furniture, sporting goods, appliances, and electronics – though coverage may be at a depreciated cost.
  • Loss of use
    In the event your home is uninhabitable, while it’s being restored, this coverage pays additional housing and living expenses to cover your family’s temporary relocation.
  • Liability
    In the event other people or their property are affected, this coverage protects your assets and covers legal defense costs in the event of a lawsuit.

Why You May Still Want Additional Coverage

Some of your home’s contents may NOT be covered by your policy. Consider these typical exclusions to determine what additional coverage could benefit your family in the event of a disaster:

  • Content replacement cost coverage
    Pays the full replacement cost of items, with no deduction for depreciation, subject to policy limits/deductibles.
  • Additional replacement cost coverage
    If your insurance limits are too low to cover the cost of a total loss, this will provide you with the additional funds necessary to rebuild.
  • Valuable items coverage
    Provides additional protection/higher limits for specialized items such as jewelry, fine art, musical instruments, and technology.
  • Green home coverage
    Rebuild and replacement allotments typically pay for standard fare. If you already have or wish to replace or rebuild with green materials, this protection is for you.

Does your fire insurance have you covered? We do. Get on the right path to rebuilding with the help of Rainbow Restoration® today.

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