Personal Liability Insurance
When you lose your home to a fire, things are pretty bad. But, things could be worse. The fire could spread to your neighbor’s home. When the fire spreads to your neighbor’s house, you could be held liable for the damage. Personal liability insurance can help cover the cost of a settlement if your neighbor sues you over the fire.
While your homeowners’ insurance usually includes some personal liability coverage, it may not be enough to cover something like someone else’s house burning down.
Consider purchasing personal umbrella insurance to supplement the coverage limits on your homeowners’ insurance — it can help pay for settlement costs that exceed the limits on your homeowners’ insurance and settlement costs if you are found legally at fault after a fire.
Personal Property Insurance
Personal property coverage covers your personal belongings if your house catches on fire. This means they will pay for the replacement of all your belongings. The coverage level will depend on your policy. Some will cover the total cost of replacement, and others will cover the item’s value, including depreciation. This is, of course, up to the limit of your personal property coverage. You can increase your personal property coverage limit when needed. You can also “schedule” specific items to provide more comprehensive coverage. This goes for high-end collectibles or jewelry, for example.
Coverage for Loss of Use
Loss of use coverage can help pay for additional living expenses if your home is damaged or destroyed by a fire and you cannot continue living there. After a fire, this coverage can help cover the costs of relocating, short-term rental expenses, hotel, laundry, and food.
What Kinds of Fires Are Insured Against?
After you file a claim, your insurance adjuster will want to know what caused the house fire. Home insurance policies cover, but are not limited to, the following types of fires:
Fires caused by electricity
A short circuit or power surge can cause extensive damage to your electrical system and start a fire that causes significant damage to your home. Your homeowners’ insurance may be able to assist you in recouping your losses.
Burning candles are something that many enjoy. However, they are an open flame that can easily be knocked over. If you or someone else in your home, including the cat, knocks over a candle, the flame from the wick could spread, causing a whole house fire.
Fires caused by grease
This is more common in homes with gas ranges. But if your cooking oil catches fire while preparing dinner, your homeowners’ insurance should cover the costs.
These are just some scenarios that we see when looking at house fires. When a fire is started by accident or due to a catastrophic failure, you and your belongings are covered. An insurance company will pay when things like this happen, which is why id it is important to have the proper coverage.