October 28, 2022

What is Covered under Home Insurance for Wild Fires?

Normally, a regular homeowners policy is designed to cover your home against smoke and fire damage. This protection extends to forest fires as well. If a wildfire destroys your dwelling, your home insurance can be used to rebuild the house or replace your damaged furnishings and belongings. Insurance coverage can also cover an increase in the cost of living, such as payments for restaurant meals or temporary lodgings while your home is being rebuilt. Be forewarned, however, as policies for homeowners insurance are getting increasingly more costly and difficult to find – especially in fire-prone areas such as Texas and California. Discuss your plan options with a trusted insurance professional today. Once you find the right plan, the insurance will cover you in three primary areas.

1. The House’s Structure

If a forest fire destroys your home partially or in its entirety, your plan’s dwelling coverage kicks in so you can repair or rebuild the house or remediate the smoke damage. The insurance can also be used to remove after-fire debris. The dwelling coverage is limited to the maximum amount the insurer will pay for rebuilding or repairing the property. When choosing a plan then, your coverage limits should be equal to your house’s replacement cost, or the amount it will cost to rebuild the structure from the ground up. The replacement cost value (RCV) is based on factors such as construction costs, labor expenses, and the size and architectural style of the residence. Covering your home for the replacement cost is preferable to choosing a policy that will cover you for the actual cash value (ACV) of a dwelling. ACV insurance only covers you for the depreciated cost of repairing or replacing a fire-damaged property.

2. Personal Belongings

A homeowners policy that covers you for fire damage will also protect you against the loss of your personal items or belongings. These items include furnishings, jewelry, and clothing – up to the limits set for these items on your insurance plan. The limit set is typically 50% of the dwelling limit for the policy. However, this figure can be adjusted to support your individual insurance needs.

3. Additional Living Costs

If a forest fire sets your home ablaze and you have to evacuate, your policy’s loss of use coverage will kick in, reimbursing you for your living expenses while you’re living away from your property. This part of the plan can cover:

Renting a temporary living space or paying for a hotel
Restaurant meals
The costs of transportation
The costs related to dry cleaning or laundering your clothes

If your home is located in a wildfire area, make sure to take the proper measures to safeguard your home against fire. This means making sure that leaves and brush are cleared away and that your smoke detectors are working properly.

Protecting Your Vehicle Against Fire Damage

Besides covering the above three key areas, you can also protect your vehicle by taking out a comprehensive policy on your auto insurance plan. This insures your car against vandalism and fire. By using the services of a company that has access to multiple types of coverage, you can reduce your insurance costs while making it easier to file a claim.

Calculating the Amount of the Payout: Why Inventorying Your Items Is Important

The amount you receive in insurance is determined by your plan policies and the coverage limits. Therefore, it’s a good idea to inventory what you have in your home and keep copies of important documents in a safe deposit box.

Filing a Wildfire Claim

When filing an insurance claim after a forest fire, call your insurance company as soon as possible. An investigator or adjustor may visit the site to review the damage. You’ll usually need to give your insurance company a “proof of loss” form that lists the damaged or destroyed items. This document lists the destroyed or damaged items as well as their date of purchase and replacement or repair cost. That is why inventorying your items can be helpful. Make sure you understand the filing requirements for making a claim.

Contact Panorama Insurance for Your Personal and Commercial Insurance Needs

Do you need homeowner’s insurance or auto insurance coverage? Maybe you need commercial insurance for a business. If you do, you can find what you need at one go-to agency. Contact Panorama Insurance near Northridge, CA today about your specific insurance needs. Call (818) 781-6630 for further details.

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