Does Homeowners Insurance Cover Fire?

Fire is one of the most common disasters faced by homeowners across the map. Fortunately, it's also one of the primary perils covered by homeowners insurance. Your home insurance policy can protect against fire damage not only to your home's structure, but to your personal property as well.

A local independent insurance agent can help you get equipped with all the home insurance you need. They'll help you find a policy that includes the right amount of coverage for all your personal property. Until then, here's a closer look at how homeowners insurance can cover fire damage.

Table of Contents

Does Homeowners Insurance Cover Fire Damage?
When and How Does Home Insurance Cover Fire?
How Much Do I Have to Pay if My Home Insurance Covers a Fire Damage Claim?
What if My Homeowners Insurance Doesn’t Cover Fire Damage?
Why Work Together with an Independent Insurance Agent?

Does Homeowners Insurance Cover Fire Damage?

Yes, standard home insurance policies are built to cover fire damage to your home and personal property. In fact, all property insurance is based on the fire peril. If your home burns down completely and your claim is approved, your home insurance company will write you a check for the insured value of the dwelling. About 50%-70% of the premium you pay is actually for the risk of fire to your home. There aren’t many coverage exclusions, either. 

Fire is one of the biggest risks to homeowners because it moves so quickly and can easily burn an entire home in no time. Homeowners insurance companies know this, and they’re there to protect you. Fires are also one of the costliest claims to insure, which explains why their risk accounts for such a high percentage of your overall premium.

When and How Does Home Insurance Cover Fire?

A standard homeowners insurance policy provides coverage against fire damage in several ways. Homeowners insurance will protect not only the dwelling or the actual structure of the home itself, but also your personal property or contents in the event of a fire. Homeowners insurance provides coverage for fires in the following ways:

• Home repair or rebuilding: Your homeowners insurance policy covers the costs to repair or rebuild areas of your home damaged by fire. The insurance company will also pay out the value of your policy if your home completely burns to the ground. Structural elements of the home, including doors, windows, roofs, etc., are protected in the dwelling coverage category of your policy.
• Property damage or destruction: If your insured personal property in and around the home is damaged or destroyed due to fire, your homeowners insurance policy will cover you. Your personal property, including silverware, clothing, etc., is protected in the contents coverage category of your policy.
• Temporary lodging: If your home is damaged badly enough by fire to cause you to need temporary lodging while waiting for repairs to be completed, your insurance policy will cover the fees for your hotel, etc. Reimbursement for temporary lodging and related expenses are covered by the additional living expenses category of your policy.
• Legal claims: If a fire in your home causes property damage or bodily injuries to third parties, such as guests who may have been staying over, your home insurance's liability coverage section can reimburse you for medical expenses and legal fees in case of a lawsuit.
• Additional structures: Your sheds, fences, and other structures near your home may also be covered under your home policy against fire damage.
• Other aspects of fire damage: Homeowners insurance provides coverage for damage due to the actual fire itself, as well as the smoke from the fire, or water damage caused while attempting to extinguish the fire.
• Wildfires: In many cases, homeowners policies provide coverage for damage or destruction caused by wildfires. However, if you live in an area prone to wildfires, you may not have this coverage included in your home insurance and be required to purchase additional coverage or a separate policy entirely.

Review your home insurance policy with your independent insurance agent to find out more about how it can reimburse you for damage and destruction caused by fires.

How Much Do I Have to Pay if My Home Insurance Covers a Fire Damage Claim?

After paying your deductible, you’ll be responsible for paying any amount exceeding your policy’s limit for the dwelling itself and/or for the property damage category, depending on what the fire damages or destroys. As far as personal property is concerned, a standard homeowners policy has a deductible that’s typically 1% of the home’s value, so if your home is worth $300,000, you might have to exceed $3,000 in damaged personal property before your insurance starts paying. In certain cases, filing a claim for personal property damage that doesn't exceed this amount may not be worth it.

You can work with your independent insurance agent to shop around for a homeowners insurance policy with a lower deductible, if you choose, or you may be able to change your policy's deductible when it renews. Just keep in mind that a lower deductible will likely lead to a higher premium rate. You may also opt to increase your homeowners coverage limits for the dwelling itself, for your personal property, or both. Keep the value of your belongings in mind when reviewing your personal policy to determine whether you need more coverage.

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What if My Homeowners Insurance Doesn’t Cover Fire Damage?

Your homeowners policy has coverage built in for fire damage or destruction. Your home itself, as well as your personal property, are both covered in the event of fire. The only thing to consider is if your personal policy provides enough coverage in both of these areas. Also, consider if your home is at an increased risk of fire damage, due to the area you live in or your personal activities. If you’re someone who frequently starts fires on purpose, such as in a chimney or while cooking, you may want extra coverage. Additionally, keep in mind that no insurance coverage exists for fire damage that is caused intentionally.

Why Work Together with an Independent Insurance Agent?

When it comes to protecting your home and personal property against fire damage and all other disasters, no one's better equipped to help than a local independent insurance agent. These agents are familiar with the best home insurance companies near you, so they know where to find the quality, reliable coverage you can depend on. Your agent can also shop and compare policies and rates to find you the best deal possible. And down the road, your agent can help update your policy and even file home insurance claims for you when necessary.