What is Fire Insurance?

What Is Fire Insurance?

With the rising increase of fire danger in southern California, many people are wondering how to protect themselves and their belongings from damages caused by wildfires and if their homeowners insurance policy will still cover them in a fire. If you live in the San Diego, California area, and have questions about how to protect your home against a natural disaster, Windfall Insurance Services Inc. can help. Continue reading to learn more about fire insurance and how to protect your investments against losses due to wildfire.

Fire Insurance: Basic Information

A fire insurance policy is classified as a type of property insurance and covers against any losses and damages caused by fire. Homeowners insurance policies will have some sort of protection against fire, however, it may be necessary to purchase additional fire coverage depending on the type and amount of damage sustained by the home in a fire. Selecting to buy a supplemental fire insurance policy will help to repair and reconstruct property that falls above the limits of a homeowners insurance policy. It is important to note that fire insurance policies do not cover fires that were started intentionally or started by a war or a nuclear threat.

How Does Fire Insurance Work?

Most standard homeowners insurance policies offer fire insurance that covers against loss and damages to both a home and the policyholder’s possessions, and the insured property generally includes the inside and exterior of the home. If a home was purchased with a mortgage, it is required to have homeowners insurance, however, it is a good idea to have this type of policy regardless. Fire insurance is purchased as an additional stand alone policy against financial loss and damages from several sources, such as lightning and other natural disasters, faulty electrical or wiring issues, and gas explosions.

A majority of fire insurance policies will cover a policyholder whether the fire originated outside or inside the home, and the actual coverage limit will depend on what caused the fire. In addition to replacing or renovating a damaged home, fire insurance also helps to pay for living expenses if a home becomes uninhabitable after the incident. The insurance policy will either reimburse someone on the actual cash value or replacement cost basis of the fire damages. It is important for a homeowner to review the value of their home every year in order to determine how much fire insurance coverage they will need each year.

Ensure Your Home Is Protected Against Fire

Your home is one of your most valuable assets, and fire insurance gives you additional peace of mind that your investment is fully protected. If you have questions about fire insurance needs in San Diego, California, contact Windfall Insurance Services Inc. today for a consultation.