Choosing More Coverage

Posted on: 6 April 2022

If you are ready to purchase a home for the first time, then you likely know that you will be required to purchase homeowner's insurance from your mortgage lender. In most cases, fire insurance is included as part of the homeowner's insurance policy. As a result, many people assume that an additional fire insurance policy is unnecessary. This can be a dangerous assumption, however, as there are several important benefits to securing a separate fire insurance policy. Take a look below at just three of the biggest ones.

Coverage in High-Risk Areas

It is no secret that insurance companies adjust the fire insurance coverage that is included in homeowners insurance policies depending on where the home is located. In states such as California, Texas, and Colorado, where wildfires are especially common, the bundled fire insurance policy terms may be lacking. If you live in one of these states — or in another part of the country that has hot, dry summers and a high risk of fires breaking out, then it is more than worth it to purchase a separate policy that provides additional protection.

More Coverage for Valuables

Fire insurance that is part of a basic homeowner's insurance policy will no doubt cover the cost of replacing your household possessions. It is important to know, however, that valuables are treated differently. For valuables to be fully covered, you'll likely need a separate policy that allows you to list each item and how much it is worth. If it is not practical to store your valuables —  including jewelry, art, or antique collectibles — then purchasing a comprehensive fire insurance policy is a wise choice.

Protection Against Charges of Liability 

When it comes to a fire that destroys your home, it is understandable that many people are focused on their own property and possessions. But even simple house fires often spread and therefore affect multiple parties. In the case of a fire that begins on your property and then destroys the homes of your neighbors, you may find yourself open to lawsuits that hold you liable for damages. Fire insurance included in many home insurance policies does not provide any protection against these charges, which means you may end up having to pay out of pocket. While these cases are rare, they can be financially ruinous in a worst-case scenario. For this reason alone, a good fire insurance policy pays for itself many times over.