high risk fire insurance

5 Most Important Benefits of a Homeowner’s Fire Insurance Policy

A fire can be a devastating experience for homeowners. It can be a sad time with the loss of a meaningful place, important belongings, and precious mementos. With homeowner’s fire insurance, you can protect yourself financially. Consider these five benefits you will want to make sure you have on your policy.

  1. The Cost Of The Home

In the event of a fire that destroys or severely damages your home, you would want to be sure that your homeowner’s insurance will adequately cover the cost of the loss. This is money you will need for repairs, reconstruction, or new construction. This is called Dwelling coverage. Talk to your insurance agent to determine how much you will need. Typically, it should cover the total cost to entirely rebuild your home keeping in mind that cost can increase over time and with market changes.

  1. The Cost Of Other Structures

If you have other structures on your property such as a separate garage, barn, home office, guest house, storage shed, pool house, outbuildings, and even fencing or gates, then you’ll want to insure those as well. In the event of a fire, these structures could also catch fire and be lost. It can be easy to forget or exclude them as you set up your insurance, but it’s wise to include them.

  1. Your Personal Property

If you’re like most people, your house is full of “stuff” –  some of it precious and some important. Many of those things may be irreplaceable in the event of a fire, but for those things that are replaceable, you do want to make sure that your insurance will fully cover the cost of repair or replacement.

When you talk to your insurance agent, ask about whether your policy covers personal property and how much it covers. Take care to insure things such as appliances, electronics, and valuable collections. Include the values of any jewelry, watches, or other small valuable items.

  1. Liability coverage

Depending on the location, structure, and design of your home, a fire may run the risk of spreading to other nearby properties and homes. This is especially true in townhomes and row homes. In this case, you may need liability coverage on your fire policy. This can help to cover the costs of repairs to other homes and property, along with any injuries that people sustain as a result of a fire that spread from your property, even if it didn’t start there.

  1. Provisional housing

If you are displaced from your home by fire, it can be reassuring to know that your family won’t have financial responsibility for your stay in temporary housing. Talk to your agent to discuss whether your policy will cover temporary housing such as an apartment or hotel while your home is being repaired or rebuilt.

When you set up your homeowner’s insurance with policies for the event of fire, be sure to talk to your agent about your needs and concerns. Insurance and fire coverage can seem expensive, but the cost is a worthwhile investment. Your agent may also be able to help you find ways to qualify for a discount on your policy. Many companies offer discounts for installing a sprinkler system or alarm system that reduces the risk of a catastrophic fire and extensive home damage.