House Fire Insurance

Fire is a Home's Greatest Threat

Fireplaces, jack-o-lanterns and burning yard waste are just a few of the reasons why fire "heats up" at this time of the year. Every fall, thousands of American families lose their homes to damage caused by fire and smoke. This is why it is extremely important to review your homeowners or renters insurance to ensure you have coverage for fire losses.

The Facts

Direct loss to property caused by fires cost American homeowners $11.3 billion in 2006. In the same year, fire was responsible for the death of more Americans than all other natural disasters combined. A majority of blazes were residential. Even more disconcerting is how many home fires could have been prevented.

Prevention

Home fires can ignite from numerous sources. Lightning, electrical currents, cooking, heating, yard waste, chemicals (e.g., gasoline, paint, etc.), and candles are common causes of residential fires. Many home losses can be prevented with an inspection of your home by a fire-prevention/risk-management professional. A multitude of fire safety tips can be found online at Web sites like www.usfa.dhs.gov, the site of the U.S. Fire Administration.

Protection

While every effort should be made to get training on fire safety and prevention, not all fires can be prevented. This fact is why having adequate homeowners insurance is extremely important.

What to Look For

Whether you have a homeowners or a renters insurance policy you should review how the coverage will respond if there is a fire in your home. Think about these questions when reviewing your coverage:

1. Does your homeowners or renters policy cover direct losses resulting from a fire? (Direct losses include actual cash value of damaged property, actual cost to replace damaged property, etc.)
   
   
2. Does the policy cover indirect losses resulting from a fire? (Indirect losses are more difficult to place a price tag on because of their unpredictability. Indirect losses include the cost to live somewhere else while repairs are being made to your home.)

Are your limits adequate?

If you have not recently reviewed your policy's home or contents coverage limits, now is the time to do so. Failure to do this necessary step could result in your home being underinsured following a loss-not the ideal time to discover this unpleasant news.

Is your coverage adequate?

Homeowners and renters insurance policies detail the type of property that is covered if there is a loss and the type of property that is limited or excluded from coverage. Limited or excluded property may include valuable items such as jewelry, collectibles, money, electronics, vehicles, boats, fences and more. These items will require special coverage either by adding an endorsement to the policy or purchasing a separate policy.

Is your deductible reasonable?

In the past, you may have raised your deductible to lower the premium. Or maybe the deductible was set at the policy's inception and you haven't thought about it since. It is important to remember that your insurance policy will pay nothing until your deductible is paid-bad news if you experience a loss and cannot afford to pay the deductible.

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