As the recent fires in Los Angeles showed us, a house fire is one of the most devastating things a homeowner can experience. Beyond the emotional toll, it can leave you with a long list of concerns, like how you’ll rebuild your home and replace your belongings.
That’s where homeowner insurance comes in, offering financial support when things feel uncertain. But how exactly does homeowners insurance work in the event of a fire? And while there are different types of coverage, most standard homeowners insurance policies include some degree of fire coverage.
When a fire occurs, your homeowners insurance will generally help with the following:
The structure of your home
If the fire causes damage to the walls, roof, or foundation of your house, most policies will help pay for repairs or rebuilding costs, up to the policy’s limit. This is often referred to as “dwelling coverage.” However, it’s important to note that the amount of coverage depends on how much your home is insured for. If the cost to rebuild exceeds your policy’s limit, you might be left covering the difference.
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Personal property
Homeowners insurance will also cover personal belongings that are damaged or destroyed by the fire, such as furniture, electronics, clothing, and valuables like jewelry or artwork. Some policies offer a replacement cost option, meaning you’d receive the cost to replace the item with something of similar value. Others may provide “actual cash value,” which accounts for depreciation over time.
Additional living expenses (ALE)
If your home becomes uninhabitable due to a fire, your homeowners insurance may cover additional living expenses (ALE). This means the insurance will pay for temporary accommodations, as well as extra costs like food and transportation while your home is being repaired or rebuilt.
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What isn’t covered by homeowners insurance in the event of a fire?
While homeowner insurance offers protection after a fire, there are some things your policy may not cover, including:
Fire damage from negligence
If the fire was caused by negligence, like leaving a candle unattended or not properly maintaining your heating system, your insurer might not cover the damage.
Certain natural disasters
Some policies may not cover fires caused by certain natural disasters, such as wildfires. Although our region isn’t prone to wildfires, if you need peace of mind, you might consider a separate wildfire policy
Flooding
If the fire leads to water damage from firefighting efforts, and the damage results in flooding, a standard homeowner insurance policy probably won’t cover it. Instead, you’d need flood insurance.
Have questions about your homeowners insurance or want to add an additional policy for extra fire protection? Roehr Insurance is here to help. After all, it’s better to be prepared, so you can focus on rebuilding your life if the unexpected happens.
