Choosing More Coverage

Posted on: 16 August 2022

If you reside in a high fire risk area, your standard homeowner's policy may not protect the property as expected. The fact that you can lose the house and all you have in it to a fire can lead to anxiety. So, it's essential to ensure the residence gets maximum protection. The best option is to buy a separate home fire insurance plan so the house and everything within it can be protected following a fire incident.

Have you just realized that your renters or home insurance doesn't offer fire coverage and wish to buy a separate policy? This piece will answer some basic questions to help you make an informed choice.

Does the Coverage Include Any Fire?

Generally, this policy is designed to cover the costs you will incur to rebuild or renovate a house once it's damaged by fire. Many companies cover all accidental fire causes, including gas leaks, candles, faulty electrical appliances, kitchen fires, damaged wiring, lightning, and fireworks. However, some policies may not cover the costs if the house gets damaged because of a forest fire. You may need a separate policy for natural disasters to get maximum protection.

What Benefits Are Linked to This Cover?

Other than rebuilding the structure, the policy will cover all lost or damaged items up to the policy's limit. The objective is to ensure the residence is reinstated to the same state it was in before the fire accident. Some policies cover other structures, such as a garage area and tools shed built next to the main house.

The plan will also cater to the expenses you will incur as the contractors rebuild the house. This includes the rented property or hotel bill and transport if the new residence is far from work or school. You will need to pay the deductible before the provider covers the other expenses to the coverage limit.

Is the Insurance Policy Expensive?

The premiums people pay for fire insurance vary, so your premium will differ from what the next client will pay. Usually, the premiums are determined by factors like your home's proximity to a fire station, property replacement cost, location, and security features.

There are aspects you can consider if you wish to pay less for the fire insurance project. For instance, getting fire extinguishers, installing alarm systems, choosing a home near a fire station, and installing a sprinkler will help lessen the premiums. A homeowners insurance agent can also recommend other options to reduce policy costs.