Home insurance is typically insurance for your home and its belongings and pays for if anything severe happens.
Home fire insurance coverage is already included in basic home insurance, which means that the insurance will safeguard against house fires, including fires caused by fireplaces, candles, or from the kitchen, etc.
Fire insurance is a must if you are a house owner. Your home can catch fire either from the chimney, kitchen equipment, candles, wildfires, etc. However, though basic fires are covered under all home insurance policies, it is only by the type of fire that you can determine its coverage in your home insurance. Know about the best home insurance at an affordable rate here.
What is home fire insurance?
Most home insurance policies are inclusive of fire damage. This means that the insurance companies pay you to repair your home or replace certain belongings in cases of fire accidents. The payment might also include money for accommodation if you are forced to shift to another house temporarily due to severe fire damage to your existing property.
However, there are insurance policies offered by certain home insurance companies offer insurance policies catering only to fire damage. These policies are standalone and pay for damage to your property due to fires from any source. The best way to find out if you need this type of fire insurance is to discuss it with your home insurance company.
If your regular home insurance covers all types of fire damages, then there is no need to enter into a separate fire insurance policy. It will be wise to keep in mind that standard home insurance with fire coverage policy not only safeguards against fire, but also against storms, burglary, and other risks.
What to expect from a home insurance policy with fire coverage?
There are two types of home fire insurance coverage included in standard home insurance policies. These are- dwelling coverage and personal property coverage, i.e., insurance for the house and possessions. Both usually come under fire insurance coverage.
The following are covered if there is a fire outbreak of any sort in your home:
- Replacing the home with severe damage
- Repairing the home if required
- Providing temporary accommodation in cases the existing property is rendered unliveable.
- Demolishing the damaged property and labour charges for removing any sort of debris or other materials from the accident site
- Architect recruitment and payment for any construction works that need to be done
- Surveyor fees in cases required.
- Any other payment and fees required to repair or reconstruct the property
- Repairing the possessions that are damaged due to the fire outbreak, including electronics, clothes, equipment, etc.
- Replacing the damaged possessions if required
- Providing storage facilities for your belongings in cases they can’t be stored on the property.
- Removing contents that are not damaged to a safe location
- Disposing of any unwanted items, including labour and other fees
Depending on your location, wildfires might also be included in the list of fire outbreaks for your home fire insurance coverage. However, areas falling under high-risk zones might be excluded from wildfire coverage as it is too common. You can, however, always purchase a policy just for home fire insurance.
Usually, in areas with a high risk of wildfires, there are more legal requirements. These might include proper management of trees and undergrowth on the property and preventing other actions that might cause wildfires. You can find out about your home insurance policy fire coverage by having a discussion with your home insurance company and then making an informed decision.
What are the risks to face if you are underinsured?
Though a fire outbreak is not something you can predict, it is best to be covered for fire damage in your home insurance policy. Again, you also do not want to pay for home insurance that does not provide enough coverage to cover all types of fire outbreaks and both property and possessions.
This is because, in case of a fire outbreak, you are set to lose your property and belongings. Thus, you must get your home insured for its exact value. Though this will mean paying more monthly premium bills, you will be safeguarded against such unfortunate fire accidents.
The insurance company will be the best to decide about the valuation of your home. Also, you must get an appraisal for your home regularly to decrease or increase your insurance value. This adjustment in the insurance policy value will ensure that you are safeguarded properly against any calamity, including fire outbreaks that might otherwise destroy your claim and make you lose your property and belongings.
How to claim your insurance after a fire?
A fire outbreak can cause serious damage to your home and property, so you must go to a safe place as soon as possible. The steps you need to follow for claiming your insurance are:
- Contact your insurance company with proper evidence, including photos, videos, police reports, etc.
- Make a list of the belongings damaged or lost in the fire and submit them to the company with proper receipts and documents as proof of ownership.
- File the insurance claim in person or online by filling up a form with the required documentation.
- Wait for the claim to be assessed and approved, which can take a while.
- Start with the rebuilding or repairing process from suitable contractors selected by you or by the company.
Home fire insurance coverage in Canada — Conclusion
Now that you have a clear idea about home insurance fire coverage, you can decide which home insurance policy to get for your home.
Home insurance fire coverage is important to protect your home and provide safety to your belongings. Remember that you are gaining safety out of home insurance; thus, it is crucial to never compromise.
If you own expensive items such as jewellery, expensive art, paintings or sculptures, you might have to get an additional fire policy, as the primary one might not cover the same. However, it is best to talk to your insurance provider.