Homeowners Insurance: Why Is It Important to Have Fire Coverage 

As a homeowner, you must navigate many risks and exposures that could threaten your property and family. Fires are among the most common incidents that may impact homeowners and inflict devastating property damage and costly financial losses. At Aztlan Insurance Agency, we can help you understand the importance of securing appropriate fire-related coverage in your homeowners insurance policy.

Does Standard Insurance Cover Fire?

In most cases, yes, fires are among the most commonly covered incidents in standard homeowners insurance policies. However, there may be some nuance regarding these incidents. For example, the recent increase in wildfire-related claims has led some insurance carriers to dial back coverage for such incidents.

What Are Some Real-life Examples of the Importance of Coverage?

When thinking about the importance of fire coverage in homeowners insurance policies, you can imagine many common scenarios that might otherwise inflict devastating losses. Consider the following possibilities and how coverage could help limit subsequent costs:

• Building repairs—Whether a fire inside your home or spreads from elsewhere, it can inflict significant damage on the structural elements of your house, as well as any outlying structures. Fortunately, your policy may help pay to repair or even fully rebuild them.

• Damaged possessions—Fires can quickly force you to evacuate, potentially leaving belongings to burn. By having a suitable insurance policy, you can receive a payout to help pay for these losses. However, you should understand that standard policies may not be capable of covering particularly valuable items, such as jewelry and fine art. You may need to purchase additional coverage, such as a scheduled property rider.

• Third-party losses—In some cases, you might accidentally start a fire that spreads across property lines. The personal liability coverage aspect of your homeowners insurance may help in these situations, potentially paying for neighbors’ losses and resulting legal expenses.

• Additional living expenses—A fire may render your home uninhabitable for an extended period. In response, your policy may help pay for alternative accommodations, such as hotel rooms and extra transportation costs.

We’re Here to Help

Contact Aztlan Insurance Agency in Greeley, Colorado, today to learn more about homeowners insurance and how appropriate coverage can water down fire-related losses.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.