It’s great to have your own place. However, home ownership also comes with certain responsibilities that need to be met to ensure your house, your investment and your peace of mind are protected.
Perhaps the single greatest fear of any homeowner is experiencing a fire. The thought of losing treasures such as photographs, keepsakes, and heirlooms (and the widescreen TV, let’s be honest) can cause some serious anxiety.
Thankfully, fire insurance can protect your home and your belongings in the event of a catastrophe.
In most cases, fire insurance is part of a comprehensive home and contents insurance policy. The coverage typically pays to repair, replace or reconstruct your home in the event It’s damaged by fire. In most cases, the cause of an accidental fire doesn’t matter with this kind of coverage, but it can be caused by:
As part of a home and contents insurance policy, fire insurance covers not just the cost to repair and rebuild your home, but everything inside of it as well (as a part of your larger home insurance policy). The goal is to provide restitution to place you back in the same position you were in prior to the fire.
Fire insurance is just one part of your insurance policy, with other types of coverage responding in the event of a theft, water damage, liability claim or any number of other perils that could damage your home or contents. Your policy also covers other buildings located on your property, such as a garden shed or garage.
Your policy may also pay to put you and your family up in a hotel or rented property while your home is being repaired or rebuilt, along with any additional expenses you might incur because you are not living in your home (such as the cost of commuting, if you must live far from work or school).
There are many factors that affect the cost of your home insurance. These include where the home is located, the value of the dwelling as well as the value of your contents. There are a number of fire discounts that can reduce the price of your insurance.
These fire credits may include:
Following a loss, your insurer will send an adjuster to work with you and local contractors to determine how much it will cost to repair your home and replace any damaged property. In most cases this will be based on the home’s replacement cost and your contents coverage, but some policies will pay actual cash value instead, which depreciates the property due to wear and age.
In either case it is very important that you ensure your home for the correct and current value, so you won’t face any surprises following a loss. Talk to your insurance provider or read your policy closely to find out how your home would be restored.
Maintaining proper fire insurance on your home policy protects your family, your home, and your memories. Get an accurate 3-minute quote with us to see what fire insurance costs on your home.