In most cases, homeowners insurance covers fire damage. Standard policies get you back on your feet after a house fire by helping pay for repairs, damaged possessions, and temporary housing and other additional expenses.
Fire ranks high on the list of most common home insurance claims, and they’re devastating experiences – financially and emotionally. Not only can flames destroy your home and personal belongings, but heat, smoke, and even the water used by the fire department can ruin your property. Anything salvageable may still need to be carefully cleaned or repaired.
Let’s take a closer look at how home insurance covers this damage so you’re prepared in the event of a fire at your home.
How does home insurance cover fire damage?
A fire typically triggers the portions of your homeowners insurance policy that protect your property. These are the dwelling, other structures, personal property, and loss of use coverage parts.
Dwelling
The dwelling coverage in your policy helps you repair damage to the structure of your home. Most standard home insurance policies also have a deductible that you’re responsible for covering.
Ideally, your home insurance has replacement cost coverage. If it does, then your insurance company should pay the full cost to rebuild your home up to the limits of your policy, less your deductible, after a total loss.
Other structures
Any other structures located on your property (e.g., sheds, detached garages) are also covered if the fire reaches them. Your coverage limits and deductible also apply to this type of loss.
Personal property
The personal property coverage, or contents coverage, in your home insurance policy pays for damage to your insured personal belongings. When items like furniture, clothing, and artwork are damaged by fire, your home insurance helps you replace them up to your coverage limits and minus your deductible.
Loss of use
Homeowners policies often cover your additional living expenses if you’re forced to live somewhere else while your home is being repaired. Loss of use coverage typically pays for hotel bills, food, and certain other similar bills when they exceed your normal expense and are in line with your current standard of living.
Does home insurance cover fire damage to others?
So what happens if you have a fire that unfortunately spreads to your neighbor’s house? Or worse, what if a visitor to your home suffers an injury in a house fire? In those situations, your home insurance responds with:
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Personal liability insurance, which covers property damage and bodily harm to others when you are legally responsible for the damage or injury.
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Medical payments, which helps pay a guest’s medical bills, regardless of fault.
Does home insurance cover wildfire damage?
Wildfire damage is typically covered by homeowners insurance. When it is, your insurer covers your damage in much the same way it covers other fire damage – that is, helping you pay for repairs.
But in states that see lots of wildfires, some carriers have pulled back on the amount of wildfire coverage they’re willing to write. Take California as an example. News outlets report that seven of the state’s 12 largest home insurance companies have paused or restricted their home insurance operations.
When this happens, whether in California or another state, homeowners may have to get coverage from a Fair Access to Insurance Requirements (FAIR) plan. FAIR plans are designed to help homeowners who live in certain high-risk areas find coverage that they can’t get from a private carrier.
When does home insurance not cover fire damage?
Home insurance generally excludes fire damage caused by acts of war. Moreover, if a homeowner intentionally sets the fire, then their insurance doesn’t cover the damage.
There are a few circumstances in which certain types of personal property are not covered under your homeowners insurance. Your home insurance doesn’t cover a car parked in your garage if it’s damaged by a home fire. The same goes for motorcycles and boats stored in your garage. All of these require separate policies.
One final note: You might have a hard time getting coverage if you have knob-and-tube wiring. That’s not the same as your policy excluding coverage, but it is worth mentioning simply because of how outdated electrical systems can increase your chance of having a fire.
Do homeowners need separate coverage for fire insurance?
Fire is a covered peril under most standard home insurance policies, so they seldom have to find additional coverage. But homeowners in high-risk areas may have a hard time finding affordable insurance. This is why FAIR plans and state-run insurance programs exist. They give people access to the important protections insurance provides.
What can I do to prevent fire damage?
When a fire breaks out in your house, even if it’s a small fire, the flames can spread quickly and engulf your entire home. That makes prevention key to protecting your home from fire.
Some ways to reduce the chance of a house fire include:
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Staying alert in the kitchen when you're cooking on a stovetop.
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Moving grills and barbecues at least 10 feet away from decks and siding.
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Replacing old appliances and electrical panels.
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Cleaning your chimney once every year.
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Keeping candles away from combustible materials.
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Installing fire doors.
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Buying textiles and furnishing that have been treated with a fire retardant.
Can you prevent a house fire from spreading?
Having working smoke detectors is one of the most important things you can do to protect your family when a house fire starts. The National Fire Protection Association (NFPA) provides several tips on preventing house fires with smoke alarms:
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Install smoke alarms in every bedroom and outside each separate sleeping area.
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Install smoke alarms on every level of the home, including the basement.
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Consider using interconnected smoke alarms so that when one smoke alarm sounds, they all sound.
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Test all smoke alarms at least once a month.
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Store your fire extinguishers away from potential sources of fire so you can access them safely.
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Teach all members of your household how to use one properly.
Working smoke detectors allow you to respond to a fire quickly so you can minimize the damage it can cause. Be sure to read the instructions well before it’s time to use it!
What can I do to prevent wildfire damage?
The best way to prevent wildfire damage is to limit the amount of fuel near your home. Keep your yard clear of things like wood, plastic, and foliage. You can also prevent wildfire damage by:
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Maintain five feet of noncombustible defensible space around your home.
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Buying noncombustible siding with a six-inch ground-to-siding clearance.
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Cleaning your roof and gutters of combustible materials.
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Getting noncombustible gutter covers.
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Installing a Class A fire-rated roof and fire-resistant windows.
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Covering vents and soffits.
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Ensure water access by placing hoses at regular intervals around your property.
How to submit a claim for fire damage?
Filing a claim for fire damage is similar to filing any type of home insurance claim.
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Contact your insurance agent or carrier. Either should be able to provide instructions on how to secure your property, conduct an inventory of damaged possessions, contact fire restoration services, and begin the claims process.
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Conduct a thorough inventory of damaged property and items. Start a detailed list of what’s been lost. Your list should include as much information as possible about each item, including the brand name, the cost or purchase price, the model number, a description, and the receipt if you have it. (Pro tip: Putting together a home inventory before a claim makes this a lot easier.)
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Meet with a claims adjuster. Your insurance company will assign a claims adjuster to gather facts about the cause and extent of your damage. If you have a home inventory, it will be an important resource during this process.
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Get estimates for repairing the damage and submit them to your adjuster. In some cases, you'll be able to hire your own contractor and submit receipts to the insurance company for payment. Otherwise, your insurance company may arrange for contractors and repairs.
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Hold onto receipts. A good way to do this is to start a file specifically for everything related to your claim. This includes all receipts for living expenses such as lodging and meals if you’re unable to remain in your home while contractors are working. These can be reimbursed by your loss of use coverage as described in your policy.
If your insurance company determines your loss is covered, then it will issue payment based on your policy terms. Remember that any claims payment is subject to your deductible.
