Your property is likely your most most valuable asset. Therefore, it’s natural to want to protect it from harm. Fire and damage insurance covers your property in the event that it is harmed by fire and other covered perils. To learn more about fire and damage insurance for properties you own, keep reading.
What is fire and damage insurance?
Fire and damage insurance protects your property and its contents which you are responsible for insuring when damaged or destroyed by losses associated with fires. So if your property (or any other dwellings or buildings on the property) and its contents are damaged by a fire, your insurance provider can help cover the costs of replacing, reconstructing, or repairing the damaged buildings or items. It may even cover the costs of moving tenants to a hotel or temporary location while your property is being repaired.
What are the benefits of having fire and damage insurance?
Having fire and damage insurance as part of your insurance policy provides unparalleled peace of mind to many property owners. Fire and damage insurance can be extensive, which means you’ll be protected in a wide range of fire-related incidents as it’s one of the broadly covered perils by property insurance policies. So whether a fire damages your property, an attached structure such as a garage, a detached structure like a shed or fence, or your contents or those of your tenants, including but not limited to clothing, appliances, and furniture, you may be covered by your homeowner’s insurance policy.
What types of fires are covered under this insurance?
Generally speaking, fire and damage insurance covers all accidental fires, no matter how they started unless they are intentional caused. Common causes of fires include lightning strikes, kitchen fires, faulty wiring, fireworks, gas leaks, candles, and faulty appliances.
How much insurance do I need to protect my property against wildfires?
The amount of fire and damage coverage property owners need varies. Your coverage limit (the maximum amount of money your insurance provider will reimburse you for an insured loss like a fire) is largely dependent on your unique needs, cost per square foot to rebuild and budget. For example, some homeowners choose their coverage limit based on the actual cash value of their property and its contents while others prefer to insure on a replacement cost basis. Depending on the size, age and location of your property, the value a property is insured to can differ significantly.
What happens if I don’t have fire and damage insurance?
Without fire and damage insurance, you will be forced to pay for the damage out of pocket. Replacing contents, such as furniture, tools, appliances, equipment, materials etc. can be costly. Not to mention the cost of repairing or rebuilding a major structure and the lost rental income associated with it if you have tenants. Therefore, to protect yourself from the financial risks associated with fires, we recommend finding a quality fire and damage insurance policy from an ALIGNED Insurance Advocate that specializes in this area.