Skip to menu


Fire & Wildfire Insurance

2023.08.11 11:46

Administrator Views:535



Are wildfires typically covered by homeowners insurance?

Does Homeowners Insurance Cover Wildfires? | Allstate

Homeowners insurance typically helps cover damage to your home and belongings resulting from a wildfire. Standard homeowners policies generally help protect against specific perils, including fire, but coverage may vary by geographic location and by policy. A homeowners insurance policy will cover damage from fire, including wildfire. If your house is damaged by a fire, the policy has several coverage types to help repair or rebuild the home, replace belongings and, if necessary, pay for temporary housing if you can't live in the home.


Should insurance companies pay if homes are destroyed in fire prone areas?

A standard homeowners insurance policy covers smoke and fire damage caused by wildfires. If your home is destroyed by a wildfire, home insurance can pay to rebuild your home, replace your belongings, and cover temporary living expenses while your house is being rebuilt.


Which kind of insurance protects from the costs of a fire in your house?

Homeowners insurance typically helps protect personal belongings from specific risks (described in most policies as "perils"), such as fire and lightning strikes. If your belongings are damaged or destroyed in a fire, homeowners insurance may help pay to repair or replace them.


What type of fires does insurance cover?

Fire insurance typically covers damage to your home and property even if you accidentally cause a fire. In fact, most home fires are caused by people, whether due to an unwatched candle, an electrical spark or a cooking mishap.


What is not covered in fire insurance?

Fire Insurance: Definition, Elements, How It Works, and Example

Fire insurance policies typically contain general exclusions such as war, nuclear risks, and similar perils. Damage caused by a fire set deliberately is also typically not covered.


What is the 80% rule regarding fire insurance?

The 80% rule dictates that homeowners must have replacement cost coverage worth at least 80% of their home's total replacement cost to receive full coverage from their insurance company.


How does insurance work with house fires?

Home insurance policies typically cover losses from a fire. Your home insurance policy will not typically cover any fires that were started intentionally in your home. There are certain preventative measures you can take to help mitigate damage if a fire does start in your home.


Do you still pay your mortgage if your house burns down?

If your house burns down, your mortgage does not automatically go away. You are still responsible for making payments on the mortgage, even if the house is no longer there. In some cases, your insurance company may pay off the mortgage if the fire is covered by your policy.


How can I get a wildfire insurance policy?

There is no such thing as a "wildfire insurance policy." You may also find that getting coverage on homes in areas where wildfires are common may be difficult. Many insurance companies have either stopped offering homeowners insurance in fire-prone areas altogether or exclude coverage for wildfire damage. If your policy covers damage from wildfires, you may pay a higher rate and/or carry a separate deductible for wildfire damage. Fair Access to Insurance Requirements (FAIR) plans are available in most states. These plans were created to give homeowners with high exposure to events they can't control, such as wildfires and windstorms, access to insurance when they can't get protection under a standard homeowners policy. If you live in a fire-prone area and can't get coverage from a private company, you may be able to get insurance from your state's FAIR plan. FAIR plans are meant to be used as a last resort by people who have no other options. Each state is responsible for determining what the plan covers and what its policy limits are. Because FAIR plans typically cost more than standard home insurance policies and have lower policy limits, it's best to exhaust all other options before opting for coverage through this type of plan.





What might coverage for damage caused by wildfires include?

Assuming wildfire damage is covered on your policy, your insurer may help pay for the following:

Your home's structure: If your residence gets damaged or destroyed in a wildfire, dwelling coverage may pay for repair costs, up to your policy's limit and minus any deductible. But if you live in an area that's prone to wildfires, that may not be enough. When natural disasters such as wildfires, earthquakes, or floods occur, many homeowners need to rebuild simultaneously in the same location, which drives up the cost of labor and materials. Some insurers offer extended replacement cost or guaranteed replacement cost coverage, which pays for expenses that exceed your policy's dwelling limit.


Detached structures: Other structures coverage may pay to repair or replace structures on your property damaged from wildfire, such as a barn, gazebo, shed, or detached garage.

Your belongings: Wildfire may also destroy your personal property, like furniture, clothes, electronics, and toys. Personal property coverage may pay to replace these items, minus your deductible and up to your policy's limits.

Additional living expenses: If you can't stay in your house due to a covered loss, loss of use coverage may help pay for you to stay in a hotel or rent a house or an apartment while your home is being repaired. Loss of use coverage also helps pay for daily living expenses, such as food and transportation above what you'd normally spend.


Does renters insurance cover damage caused by wildfires?

If the apartment, condo, or house you're renting is damaged in a wildfire, your landlord's insurance policy may cover the cost to repair the structure, but it won't cover the cost of replacing your belongings. If you carry renters insurance, your policy's personal property coverage may pay to repair or replace your personal items damaged by a covered peril. Additionally, your renters policy's loss of use coverage may pay for temporary housing if you need to stay somewhere else while the property is being fixed.