National Association of Real Estate Editors member
Bylines include Forbes, Bankrate, and CBS News
Aly is a reporter specializing in real estate, mortgages, and personal finance. You can find her work in Hearst newspapers and numerous financial publications.
3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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Every 88 seconds in the U.S., a fire department responds to a home structure fire, according to the National Fire Protection Association.[1] It’s important to make sure you have coverage to protect your home and avoid out-of-pocket expenses to repair the damages.
Standard home insurance policies include fire insurance, which will cover the costs of repairs to the structure of your home, replacement of certain belongings, and medical and legal costs. It also covers items damaged by smoke and living expenses if you need to live elsewhere during home repairs.
Comparing quotes is the best way to find the best homeowners insurance option for you. Here’s what you need to know about fire insurance.
Quick Facts
Traditional home insurance policies exclude coverage for damage from wildfires in some cases, particularly in fire-prone regions.
Homeowners insurance policies typically don’t cover intentionally set fires and arson.
A basic home insurance policy covers 16 main perils, including fire and smoke.
Does home insurance cover fires?
Fire is one of the main 16 perils that a basic home insurance policy covers, along with windstorms, explosions, theft, vandalism, smoke, damage caused by vehicles, and more. Unless you live in a wildfire-prone area, your home insurance policy provides sufficient coverage for potential accidental fire damage.[2]
Under a typical home insurance policy, your insurance will pay to repair your home’s structure if a fire causes damage. It also covers medical costs, legal liability, damaged personal property, and loss of use, which includes additional living expenses that stem from a fire event.
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Fire damage covered by home insurance
A traditional homeowners policy will cover most fire events and resulting damage. This includes fires started by lightning strikes and candles, accidental fires in the kitchen (like grease fires), and electrical fires.
Your home insurance policy can also cover chimney-related fires, as long as you’ve been maintaining the chimney properly. It may not cover fires that stem from poor maintenance or negligence.
Fire damage not covered by home insurance
Home insurance never covers arson. It won’t cover fires that occur out of negligence or intentional foul play, though it usually covers accidental fires.
In some cases, home insurance policies may not cover wildfires, particularly in wildfire-prone areas, like California and Washington. Some insurers will increase premiums or exclude coverage for wildfires. Others may not offer home insurance policies in these areas altogether.
If you live in a wildfire-prone area, you may need to purchase a separate fire insurance policy to supplement your home insurance policy. You can look into acquiring fire coverage through a difference in conditions policy (DIC) or your state-sponsored FAIR (Fair Access to Insurance Requirements) Plan for high-risk policyholders.[3]
Difference in conditions policies are supplemental policies that fill in the coverage gaps in an existing insurance plan.
You can select coverage for specific losses and events — like damage from fires, floods, earthquakes, and mudslides. You can also combine this type of coverage with a FAIR plan for more comprehensive home insurance coverage.[4]
How much does fire insurance cost?
Since most home insurance policies include fire as a covered peril, fire insurance usually won’t cost you any additional money unless you need to purchase a DIC policy to cover wildfires or a similar event. The average cost to cover a $250,000 home is about $1,550 per year.
The specific cost to cover your home will depend on various factors, including the cost of labor and building materials in your area, any high-liability features you may have (a pool, for example), and the coverage limits and deductibles you choose. You may also pay more if you’d like additional coverage for higher-value belongings, like jewelry or artwork.
Below, you can compare the average annual insurance premiums by dwelling coverage limit.
Dwelling Coverage Limit
▲▼
Average Annual Premium
▲▼
$150,000
$1,125
$200,000
$1,327
$250,000
$1,548
$300,000
$1,770
$350,000
$1,982
$400,000
$2,194
$450,000
$2,438
$500,000
$2,683
How to insure a home that’s at high risk of fire
If you’re in an area that’s particularly prone to fires, you may have a hard time getting insurance coverage for fire events — specifically wildfires. If this applies to you, you should shop around for coverage. Even if certain insurers exclude coverage in your area, some may simply charge you a higher premium to account for the added risk.
You can consider a FAIR Plan — a type of state-sponsored plan that offers coverage for residents. The availability, coverage types, and limits of these plans vary by state, so check with your state’s insurance department to see what’s available. Often used in tandem with a FAIR Plan, a DIC policy can also fill in the coverage gaps of your main insurance policy.
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How to file a fire insurance claim
In the event of a fire, you’ll want to file an insurance claim as soon as possible to make sure your insurance company can process it quickly and you can make repairs and get your home back in good condition.
Here’s how the process typically looks for filing a fire insurance claim:
Take photos and videos of any damage. You’ll need this information and documentation when filing your claim.
Call your insurance company or insurance agent if you have one. Report the incident, and give a rundown of what occurred and when.
Submit supplemental information. Send your claims adjuster any photos and videos you have, as well as the police or fire department report.
Wait for the adjuster to visit. They’ll come to your property and assess the damage.
Receive your payment. Once the insurance company finishes processing your claim, you’ll receive the insurance funds (usually via check). You can then use this money to start making repairs.
Good to Know
The timeline for these steps varies by insurer, but the insurer must acknowledge your claim within a certain number of days of receiving it, depending on your state. Keep in mind that more extensive damage may take longer to assess and repair, so make sure you contact your insurance company quickly to ensure the process moves as efficiently as possible.
What to do if your insurer denies your fire insurance claim
If your insurer denies your fire insurance claim, you have options. First, look at the official denial from your insurer to find the reason the company denied your claim. The insurance company may deny your claim if the policy excludes the fire event or the fire was intentionally set. In some cases, the company may say you provided insufficient information.
If you didn’t provide enough information, you may be able to send additional videos, photos, and receipts to have the claim reopened. You can also ask for an independent appraisal of the damage or request arbitration — an out-of-court legal process to compare your and your insurer’s cases.
Finally, you can contact your state’s department of insurance or an attorney if you feel the insurer denied your claim illegally. Hiring a public adjuster may help, too. These are insurance adjusters not employed by any specific company who can give you professional help with your claim.
Fire insurance FAQs
If you still have questions about how fire insurance works or how to file an insurance claim after a fire, the following information should help answer them.
What type of insurance do you need for a fire?
You typically need a standard home insurance policy to protect your home against fires and fire damage. But in some wildfire-prone areas, home insurance policies may exclude wildfires. In this case, you may need to use a state-sponsored FAIR Plan or get a DIC policy to cover the gap.
How does insurance pay out after a fire?
Home insurance policies compensate you in one of two ways: actual cash value (ACV) or replacement cost value (RCV). With actual cash value, you’ll receive the total value of the damaged items, minus any depreciation. Replacement cost value gives you the funds needed to replace the damaged item with something of similar quality at today’s prices. The payment specifics depend on your policy terms.
What does a fire insurance policy cover?
Fire insurance is part of a traditional home insurance policy and will cover the costs of repairing your home’s structure if it incurs fire damage. It’ll also cover personal belongings lost in the fire, as well as legal costs stemming from the event. If your home is unusable during post-fire repairs, it can also offer funds for living expenses for food and a place to stay.
Is fire insurance different from homeowners insurance?
No. Fire is one of 16 main covered perils in a typical home insurance policy. But residents of wildfire-prone areas may face exclusions for wildfire events. In this case, you’ll need to purchase a FAIR Plan, a DIC policy, or both.
Aly J. Yale is a freelance writer and reporter covering real estate, mortgages, and personal finance. Her work has been published in Forbes, Business Insider, Money, CBS News, US News & World Report, and The Miami Herald. She has a bachelor’s degree in radio-TV-film and news-editorial journalism from the Bob Schieffer College of Communication at TCU and is a member of the National Association of Real Estate Editors.
Edited byKatie PowersAuto and Life Insurance Editor
Katie PowersAuto and Life Insurance Editor
Licensed auto and home insurance agent
3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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