Fire Insurance

Fire insurance specifically covers losses and costs related to the occurrence of a fire. Wildfires, natural disasters, explosions, lightning, and electricity are potential causes of fire that could wreak havoc on your property. It’s not only the flames that you need to be concerned about. Certainly, the fire itself causes damage to whatever it touches. In addition, there may be smoke damage, or there may be water damage due to firefighter efforts or sprinkler systems.

While some standard business and homeowner policies include fire coverage, some do not. Many times, you will purchase fire coverage in addition to a standard property policy in order to make sure your repair and replacement costs are covered in the event of a fire.

If you own a home or business or if you have high-value items in your home or business, it is in your best interest to carry fire insurance. A good policy will not only cover repairs and replacement of personal items but will also pay out for living expenses if your home is too damaged for you to live in after a fire. For instance, if you need to stay in a hotel until your home is repaired, the fire policy would cover that cost. Similarly, on the business side, if you are unable to run business operations due to damage, this type of insurance will pay out to cover your losses due to being unable to use your property for business. Such payments can include wages for employees while the business is being repaired, which is a major workplace benefit.

It’s important to know that some policies will pay out on actual cash value, which is whatever your items and property are currently worth. If you have a TV that’s five years old, the actual cash value is going to be much less than what you paid for the item when you purchased it. In contrast, replacement-cost coverage will pay out the cost of what you’d need to replace the item in the current market.






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