Does Homeowners Insurance Cover Fire Damage?

Every 88 seconds in the U.S., a fire department responds to a home structure fire, according to the National Fire Protection Association.^[1]

Most homeowners policies cover damage from multiple types of fires, including wildfires. But if you live in an area that’s at a higher risk of wildfires, your homeowners policy might exclude wildfire damage.

Fire insurance isn’t a separate type of insurance; it’s part of a standard home insurance policy. Here’s what you should know about finding fire protection coverage for your home.

What fire insurance covers

Fire is one of the 16 main perils that a basic home insurance policy covers. 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.

Unless you live in a wildfire-prone area, your home insurance policy provides coverage for accidental fire damage from the following perils:^[2]

Fire and lightning

If lightning strikes your home and causes a fire, home insurance will pay to repair your home’s structure.



Explosion

If an explosion in or near your home causes a fire, a standard home insurance policy would cover the repairs.



Damage from aircraft and vehicles

If a plane or car crashed into your home and started a fire, your home insurance should cover the damage.



Electrical problems

Home insurance typically covers fire damage stemming from electrical issues, such as faulty wiring or a damaged electrical panel.

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.

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Actual cash value vs. replacement cost

How much your home insurance will pay out in the event of fire damage depends on whether you have an actual cash value or a replacement cost policy.

Actual cash value policies reimburse you for the value of your item minus depreciation. Replacement cost policies reimburse you for the value of your item without deducting for depreciation. These policies can be more expensive because they enable you to replace your items at today’s costs.

Fire damage homeowners insurance won’t cover

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 (DIC) policy, a supplemental policy that fills 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 (Fair Access to Insurance Requirements) Plan for more comprehensive home insurance coverage.^[3]

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 insure a home with $300,000 in dwelling coverage is $2,844 per year, Insurify data shows.

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 across many popular insurers.

Cost of homeowners insurance in wildfire-prone states

Insurance companies often decline to cover fires in areas at a higher risk of wildfires since they’re much more likely to have to pay out on a claim. As a homeowner, this can also limit your ability to get fire coverage, since you’ll likely have fewer insurance companies to choose from.

The states in the table below have an increased risk of wildfires, according to FEMA’s National Risk Index. The national average cost of home insurance for $300,000 in dwelling coverage is $2,844 per year, Insurify data shows. As you can see in the table, a $300,000 policy in some of these wildfire-prone states can cost much more than the national average.

The below national rates are estimated rates current as of: Monday, August 10 at 5:00 PM PDT. 

Data reviewed by Chase Gardner

Chase GardnerData Insights Manager

• Data expert on auto trends and driver behavior

• University of Chicago graduate with statistics degree

Chase spearheads analytics for Insurify’s data insights team. With his deep expertise in insurance data, Chase is often interviewed on industry trends.

Featured in

State	Average Annual Premium
Nevada	$1,296
Washington	$1,500
Idaho	$1,740
California	$2,004
Arizona	$2,196
New Mexico	$3,348
Texas	$4,704

Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

How to insure a home that’s at high risk of fire

If you’re in an area 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.

You’ll typically follow these steps to file a fire insurance claim:

1. Take photos and videos of any damage. You’ll need this information and documentation when filing your claim.

2. Call your insurance company or insurance agent if you have one. Report the incident, and give a detailed account of what occurred and when.

3. Submit supplemental information. Send your claims adjuster any photos and videos you have, as well as the police or fire department report.

4. Wait for the adjuster to visit. They’ll come to your property and assess the damage.

5. 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.

What to do if your insurer denies your fire insurance claim

If your insurer denies your fire insurance claim, you have options.

• Understand why your insurer denied your claim. 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 if the fire was intentionally set. In some cases, the insurer may say you provided insufficient information.

• Send additional documentation. If you didn’t provide enough information, you may be able to send additional videos, photos, and receipts to have the insurer reopen the claim. You can also ask for an independent appraisal of the damage or request arbitration — an out-of-court legal process to resolve your and your insurer’s cases.

• Contact your state’s insurance department. If you feel the insurer denied your claim illegally, you can contact your state’s department of insurance or an attorney. Hiring a public adjuster may help, too. These are insurance adjusters who aren’t employed by any specific company and can give you professional help with your claim.

Ways to protect your home from fire damage

Here are some things you can do to help protect your home from fire damage:^{[4] [5]}

• Screen with metal mesh. Cover the vents in your attic, foundation, and eaves with one-eighth-inch metal mesh, screen decks, and stilt foundations.

• Use fire-resistant building materials. If you’re building or updating your home, make sure your roof has a Class A fire rating and opt for fire-resistant siding and other materials.

• Replace your windows. Install tempered glass windows with at least two panes.

• Replace combustible gates and fences. Make sure that your fencing is noncombustible — especially within five feet of your property.

• Maintain defensible space. Remove flammable vegetation and debris within five feet of your home, including cleaning your roofs and gutters. Ensure 10 feet of space between tree crowns, and prune tree branches close to the ground within five to 30 feet of your home. Follow other suggestions in the home ignition zone checklist from the National Fire Protection Association.

• Have fire tools on hand. These include a ladder tall enough to reach the roof, a rake, a shovel, and a water bucket.

Fire insurance FAQs