Frequently Asked Questions About Home Fire Insurance

There are many reasons for fire outbreaks in homes. These include faulty electrical wiring and natural wildfires. Regardless of the cause of the fire, it's crucial to take a home insurance policy that covers you against fire outbreaks. Here are a few frequently asked questions on home fire insurance.

What Is Home Fire Insurance?

This insurance policy covers you against fire loss or damage. You are compensated if you suffer fire damage caused by faulty wiring, gas explosions, lightning, wildfires, or other natural disasters.

Most home fire insurance policies provide coverage no matter where the fire originated. Therefore, it doesn't matter whether the fire came from outside or inside the home. However, the coverage limit varies depending on the cause of the fire. This policy could reimburse you on an actual cash value or replacement cost basis.

How Does a Fire Insurance Claim Work?

In case of a fire in your home, you should file a claim with your insurer. Make sure you gather evidence, like pictures of all damage. Your insurance provider will send a claim adjuster to assess the cost of damages.

Review the adjuster's estimates and compare them to the terms of your policy. You should ensure the estimate is within your policy limits for fire damage. If your home is a total loss, you may get reimbursement for your home's current market value.

Why Was Your Claim Denied?

There is a chance your insurance adjuster will reject your fire insurance claim. This may be because you have violated the terms of the policy. You must understand the terms of your insurance policy before filing a claim. It may help to go through the insurance contract with your lawyer. Some reasons fire insurance claims are denied include:

  • Vacant Home: Homes with no one living in them aren't covered by fire insurance. However, if you take a special policy, like for vacation homes, you may be able to claim reimbursement.
  • Poor Quality Wiring: Your insurance provider will not reimburse you if a fire is caused by wiring that doesn't meet the area's building code standards.
  • Nonpayment: If you have unpaid premiums on your policy, you will not be compensated for fire damage.
  • Illegal Activity: If the fire was caused by illegal activity like drug manufacturing, your claim will be denied.
  • Arson and Fraud: If you set the fire intentionally or lied about the details of the fire outbreak, your insurance adjuster will turn down your claim.
  • Underinsured: If your homeowners' policy's value is insufficient to cater for repairs or replace your home, your claim will be denied. 

For more information on insurance, contact a professional near you.