4 Key Points Regarding Home Fires and Insurance Coverage

2/18/2022 (Permalink)

Severe fire damage in a Grosse Pointe Farms, MI home.

Home Fires and Insurance Coverage

A home fire can severely damage or even destroy your property. Fortunately, most homeowner’s insurance policies cover fire damage, helping to reduce out-of-pocket restoration costs. Because coverage varies, it’s important to familiarize yourself with specific policy details, exclusions and additional options that may provide enhanced protection.

1. Common Insurance Coverage

When it comes to fires, insurance typically covers costs associated with repairing or rebuilding the dwelling as well as replacing damaged possessions. If your home is temporarily uninhabitable, many policies also provide additional living expenses to fund interim housing.

2. Liability Protection

Liability protection is another common component of many policies. Possessing this coverage can be important, especially if someone is injured at your residence or the actions of a household member spark the home fire.

3. Vacant Home Fires

Some residents of Grosse Pointe Farms, MI, may own dwellings that are vacant for a portion of the year. While the exact definition varies, a residence is often deemed vacant if it’s unoccupied for more than 30 consecutive days. If you own a vacation home, this distinction can be important because your insurance provider may deny a claim if it can prove the incident was a vacant home fire.

To safeguard your investment and financial security, you should discuss your options with an insurance representative. You may be able to include an endorsement on your current coverage or purchase vacant home insurance.

4. Arson

Intentionally setting a residence on fire is a crime that nullifies insurance coverage. To combat fraud and rule out arson, your provider will likely investigate the cause of any reported inferno. Suspicious behavior, such as increasing coverage or making several expensive purchases, prior to the blaze may also cause your provider to question and possibly deny your claim.

A devastating home fire is a potential threat that many homeowners fear. Recognizing exclusions and ensuring you have adequate coverage for every property you own can spare you from costly out-of-pocket expenses, providing some peace of mind.