If you have ever been involved in a fire or live in an area considered a fire zone, you may find yourself wondering about home fire insurance. Many standard home insurance policies cover fire damage. There were an estimated 372,000 residential fires in 2020 alone that resulted in $8,604,400,000 in losses. As such, investing in home fire insurance is highly beneficial.
What Does it Cover?
Policies vary, but there are those that will help you cover the cost of repairing your home or rebuilding if necessary. Further, there are some plans that can provide you with the cost of expenses associated with relocation while you wait for necessary repairs or rebuilding.
You may wonder about a residential fire caused by a natural event that is not covered by your insurance plan, like, for instance, a fire caused by an earthquake. Some policies do not cover the cost of earthquake damage, yet the policy would still cover the cost of the fire damage associated with the earthquake.
A good policy will also cover the cost of your personal belongings, appliances, electronics, and your furniture if they are damaged by fire. If your property suffers smoke damage, review your policy to make sure that coverage is provided also.
Check the Policy Limits Annually
In most cases, you cannot receive insurance that is more than the value of your home. However, it is not uncommon for homeowners to build additions to their home or make upgrades. Additions and upgrades can add value to your home. Therefore, you should check your policy limits each year to make sure it matches the total value of your home.
Keep in mind that insurance policies also usually focus on actual cost value rather than replacement cost. The difference is that actual cost value provides you with the money to pay for what your home and items are worth after factoring in depreciation. Replacement cost is the worth of your items and home before depreciation.
Understanding Insurance Lingo
It is not always easy to understand insurance jargon. In fact, some homeowners find it confusing and frustrating. Fortunately, you can speak to a qualified agent about home fire insurance plans or home insurance plans in general to find out more about what they have to offer.
An agent will be more than happy to discuss different policies with you that best meet your needs based on your wants and your budget. Further, the agent can help you understand what the policy does and does not cover so you are well-informed and more prepared to make the right decision for your home's coverage.
For more information on home fire insurance coverage, contact a professional near you.
Share16 December 2022
I still remember the first time I had to chose an insurance policy; I was 17 years old and had just saved up enough money to afford my very first car. I was so excited to begin driving, but overwhelmed with all of the different auto insurance options. My father helped me chose a full-coverage policy that would cover the cost of my car if it were to become damaged in an accident. When I inevitably caused a small fender-bender as a new driver, my insurance company paid for my car repairs, so it sure was the best policy for me! Now that I am older and have learned a lot about home insurance and other types of insurance, I thought I would make a blog to help others who need insurance advice, like what my dad gave me. I hope I can help you make wise insurance decisions!