Facing the Flames: Homeowner’s Insurance and Fire Damage

The thought of a fire can send a chill up any homeowner’s spine. But in the event your house does incur fire damage, insurance is likely the first place you’ll turn to recover the loss. 

Fire damage is often covered by standard homeowners insurance plans, but this protection has its limits. Knowing what you’re covered for and creating a preparedness plan can help your household bounce back — and prevent fires in the future. Here’s what you should know about insurance and fire damage. 

Homeowners Insurance and Fire Damage 

Most homeowners insurance policies contain fire damage coverage. If there’s a fire at your home, this coverage can cover the cost of repairing, rebuilding, and replacing lost items.

For some policies, fire damage protection extends to the expenses you incur, such as lodging and food, if your house is uninhabitable following a fire. Insurance providers may also offer personal liability coverage to protect you if a non-member of your household is injured in the fire. 

Following a fire, you can submit a claim with your insurer to determine what you’re owed for the damage. Depending on your policy, you may be eligible for the full cost of the repairs or even slightly more if your plan includes guaranteed replacement, which will adjust your reimbursement according to inflated material costs. 

If you’re looking to replace personal belongings, reimbursement depends on whether your plan covers the replacement cost or the actual cash value (ACV). Replacement cost coverage will give you what it costs to purchase new items similar to those you lost, while ACV coverage estimates the value of your lost items and reimburses you accordingly. 

Fire Damage: What’s Covered By Homeowners Insurance? 

Homeowners insurance may be equipped with fire coverage, but that doesn’t mean all damage is eligible for reimbursement. While policies can vary, many plans include similar areas of coverage; to find out what you’re covered for, refer to your own policy’s fine print. Here’s what is typically covered by standard homeowners insurance plans: 

In most cases, fire damage is covered as long as the blaze was accidental and occurred too suddenly to be stopped. However, some insurance companies will deny a claim if they judge the fire as easily preventable. For example, a chimney fire may not be covered if adjusters find that you failed to clean your chimney before using it. 

Wildfire coverage is also worth mentioning, as some insurers may exclude it in areas where wildfires are common. Coverage specifics, as well as deductibles, can vary greatly depending on the region. 

What Homeowners Insurance Doesn’t Cover 

Not all losses are covered by homeowners insurance. If the source of your fire damage doesn’t fall under the list of covered circumstances, you may be responsible for the full cost of any necessary repairs or replacements. Some common insurance exclusions faced by homeowners include: 

• Intentional damage. Some homeowners start fires on purpose in the hopes of receiving an insurance payout. But these schemes are rarely effective and highly illegal. 
• Neglected maintenance. If a fire is caused by a failure to maintain parts of your home, insurers may not cover it. Consider the chimney example above or a backyard fire caused by a dirty grill. 
• Vermin. Wild animals can chew on your home’s wiring and start an electrical fire. Ignoring a mouse or raccoon problem means you won’t be reimbursed for the subsequent fire damage. 
• Water leakage. If you fail to address a known hole in your roof, the continuous water seepage can start an electrical fire that won’t be covered.
• Vacancy. Insurance companies may deny your claim if you’ve long since moved out of a house and it incurs fire damage in your absence. 

Filing an Insurance Claim for Fire Damage 

If your home incurs fire damage, immediately filing a claim may not be the best course of action. Filing too many claims in one year means you might face higher premiums and might limit your eligibility for coverage. If the damage is minimal, repairing it at your own expense might save you money in the long run. 

For extensive damage, turning to your insurance company may be the most effective choice. If this is the case, here’s a quick guide to filing a claim. 

1. Reach out to your insurer. Claims can usually be submitted online or over the phone. 
2. Document the damage. Take plenty of photos and videos of the damage to present to your insurer. 
3. Make minor repairs. In some cases, waiting to make repairs could result in more damage. You can make minor repairs once you’ve documented the fire damage. 
4. Meet with an adjuster. Claims adjusters are sent by insurers to evaluate fire damage in person. The report they file will be used to calculate what you’re owed. 
5. Save receipts. Keep thorough documentation of additional repairs or living expenses you incur that might be reimbursed. 

Fire Prevention Tips 

Even if your homeowners insurance covers fire damage, prevention is the best medicine. According to Homeowner’s Insurance Advisor Kristopher Kane, “The vast majority of fires are preventable. Most happen because of human error.” Knowing how to respond to a fire is undoubtedly important, “but even just taking the time to understand basic fire safety can prevent tragedies.” 

In the event of a fire, making the decision to get out of harm’s way is just as vital. “Even if you have a fire extinguisher, know when a problem is too big to tackle and make sure you can get out of the situation and to safety quickly,” says Kane. “Even if you can’t see smoke, there may not be enough oxygen in the available air to keep you conscious.”

The fire prevention methods below can help you lower the risk of fires in your home: 

• Test smoke alarms monthly. 
• Keep fire extinguishers at home — and know how to use them. 
• Establish a fire safety plan with your household. 
• Keep flammable items away from heaters. 
• Keep grills, stoves, and chimneys clean. 
• Avoid smoking indoors. 
• Keep matches and lighters out of reach of children. 
• Replace cords or appliances with frayed or bent wires. 

Protecting Your Home From Fire Damage 

Accidents can happen, even with preventative measures. If your home incurs fire damage, a quality homeowner’s insurance plan can help you get your house back to normal. Knowing what’s covered by your policy and creating a fire safety plan means peace of mind is possible once the fire is put out. 

Insurance can be complex, but with our help, you can navigate it with confidence. Visit Claim Guide today for more policy guidance. 

---

Reviewed by Kristopher Kane

Kristopher Kane is a career freelance writer with over 15 years of experience and a broad portfolio encompassing various topics within the insurance industry. He has written for both B2B communication and consumer-level customer engagement.