Utilizing insurance coverage for fire damage cleanup can streamline the process while minimizing financial loss. Your insurance company can cover the cost of emergency cleanup services that you may struggle to pay for out of pocket.
The faster you start the process of sorting, cleaning, and deodorizing your property and belongings, the more likely you are to salvage more than you replace.
The problem for many small business owners and homeowners is determining which insurance policy will cover their fire damage and how to file a claim.
What does the process look like? Will the insurance company cover all of your cleanup expenses? Will they pay to replace and rebuild, leaving you whole in the case of lost belongings and property damage? These are valid questions, and we’re about to answer them for you in depth.
The time to think about insurance coverage for fire damage is right now. Don’t wait for an emergency to start asking questions. You’ll come out in a better position if you prepare rather than react.
Read our winter holiday fire safety tips.
Why Do You Need Fire Insurance?
Fire insurance coverage protects you against financial loss if a fire damages or destroys your property. There are four basic protections that you may secure by buying fire damage insurance:
- Cleanup expenses
- Replacement expenses for non-salvageable belongings
- Repair expenses for property damage
- Accommodations and food if your property is uninhabitable
If you own commercial or residential property, you do need fire insurance. In 2019, there were more than 1 million fires across the United States. That means a local fire department was in response to a fire call somewhere in the country about every 24 seconds of the year.
The cost of property damage for all of those fires – cumulatively – was around $15 million. If you add in the small fires that homeowners put out themselves without calling for help, it’s clear why you need insurance protection for fire damage.
You never know if the next fire call will come from your home or workplace. Preparing for the worst now will allow you to make the best of a bad situation if you ever need to file a fire damage claim.
Now that you know why you need insurance coverage for fire damage, how do you get that coverage? Is it possible that you already have it but aren’t aware? Let’s answer some questions regarding protections through your homeowner’s insurance, renter’s insurance, and other policies that you may already pay for monthly or annually.
Does Homeowners Insurance Cover Fire Damage?
Homeowners’ insurance does typically cover fire damage, but that doesn’t mean it’s included in every policy. The best way to get a clear answer is to find a copy of your policy and start reading until you find the answers to the following questions. You can call your insurance company to ask these questions if you can’t find the answers on your own.
- Is there a clause extending coverage to fire damage? If not, consider calling your insurance company to ask about adding that protection.
- Are there any limitations on claims? It helps to know what circumstances may disqualify you from filing a claim successfully. Most policies will cover all fires regardless of how or where they started as long as the homeowner did not intentionally set the fire.
- Does your policy cover structures that are attached to the main dwelling like a garage or sunroom?
- Could your policy cover structures that are unattached to the main dwelling like wood shops and storage buildings? You may see this under “other structures covered.”
- Will your policy cover the cost of hotel rooms and food if your property is uninhabitable after a fire? Is there a limited number of weeks or months that you can collect this form of compensation?
- Does the policy cover your personal belongings? Is there a maximum value assigned?
Once you have these answers, you can determine if your current coverage is adequate for your needs. Think about the value of your property and the value of all belongings inside the property.
Does Renter’s Insurance Cover Fire Damage?
You should have a clause in your renter’s policy that includes insurance coverage for fire damage to your personal belongings. Since renter’s insurance is designed to cover your personal belongings and not the structure you live in, damage to the rental home is not included.
Most policies will cover the cost of all belongings damaged or destroyed in a fire within the rental property. Typically, the only disqualifying factor is the renter starting the fire intentionally.
Check with your policy to make sure property stored in attached or unattached secondary buildings like garages or sheds are covered. If you aren’t sure what maximum value is assigned to your policy, now is the time to check. Estimate the value of all personal belongings in your rental home and compare that to the maximum amount you could claim in case of a fire.
You can call your insurance company to increase the limits if needed. It’s important to balance the coverage you need with your maximum budget because more coverage does mean a higher payment.
Is my Landlord Responsible for Fire Damage?
Most responsible property owners do carry insurance coverage for fire damage, and that includes landlords. That insurance policy should cover the expenses needed to restore the property to a habitable condition.
What that policy may not cover is the replacement cost for your personal belongings. That’s why most renters protect themselves with renter’s insurance.
If you rent commercial space for your business, you should also carry insurance that protects your equipment and other assets stored within that space. The owner of the property should carry coverage for fire damage to the property, but that policy may not cover your personal belongings.
It’s possible to hold a landlord accountable for the cost of your personal losses if they failed to properly maintain the property. The lack of proper maintenance and care for the property must directly lead to the fire in order for that to work, and you would likely need an attorney to enforce your rights and prove that the landlord was negligible.
How to Claim Fire Damage
A fire has hit your property and you’re in a state of shock. Ensuring the safety and well being of every member of your household is your first concern. Reporting the event and opening a claim with your insurance coverage for fire damage is next, and you should get to that as soon as possible to ensure financial assistance isn’t delayed.
Ideally, you will already know what coverage is offered through your insurance policy. You should still read through a copy of the policy to determine what information you need to provide the insurance company while filing a claim. You will need basic information like the date and time of the fire, but you may also need police reports and other documentation as it becomes available.
The next step is to call the insurance company and file the claim. Ask about immediate assistance with housing and food if needed. You may also ask about emergency pre-cleaning and other services that you may need to start cleaning up your property before permanent damage sets in.
How fast your insurance company responds will depend on a variety of factors, including the terms of your policy and the nature of the fire. That’s why it’s important to file your claim as quickly as possible. Make the insurance company aware of any immediate needs.
How Does Insurance Pay for Fire Damage?
Once you file a claim for fire damage, your insurance company will determine how much compensation you’re entitled to based on the damage. There are two ways they may assess that dollar amount:
- Replacement Cost – The cost of replacing items lost or restoring property based on current market prices. What will it cost today to restore your property or replace your belongings?
- Actual Cash Value – The real value of damaged or destroyed items with no regard to replacement cost. What are the items worth, considering depreciation?
Fire Damage Restoration with SMRSI
Response times are critical if you want to salvage at least some of your belongings and minimize fire and smoke damage. You may do some of the cleanups yourself, but the process is faster and easier to manage when you have a team of professionals on your side.
The dedicated technicians at Service Master by RSI are committed to responding within 24 hours when contacted immediately after a fire. Once your property is declared safe for cleanup, we can perform emergency pre-cleaning to care for at-risk valuables. From removing and cleaning valuables to cleaning and deodorizing surfaces inside and outside, we have the tools and manpower to do the job quickly.
To learn more about insurance coverage for fire damage and our cleanup services, call ServiceMaster Restoration by RSI at (405) 251-7286 . When your life is turned upside down, we’re here to help restore your peace of mind 24 hours a day, 7 days a week, 365 days a year.
