Does Homeowners Insurance Cover Wildfires and Property Damage?

Homeowners insurance can provide some protection against wildfires and property damage, but it's essential to understand what's covered and what's not. Typically, standard homeowners policies cover damage caused by wildfires, but the extent of coverage may vary depending on the policy and location.

Most standard policies cover damage to the home's structure, such as the walls, roof, and foundation, but may not cover damage to personal property like furniture, clothing, and other belongings. However, some policies may offer additional coverage for personal property.

In areas prone to wildfires, some insurance companies may offer specialized policies that provide additional protection against wildfire risk. These policies may include features like increased coverage limits, wildfire-specific deductibles, and emergency fund assistance.

If you own a house in a wildfire-prone area, it's essential to know what your homeowners insurance covers.

Nearly 59,000 wildfires were reported in the United States in 2020 alone, burning through 10.1 million acres of land and causing billions of dollars in damages.

Human activity is to blame for 84% of wildfires in the US, according to Science.org.

If a wildfire sweeps through your neighborhood, your homeowners insurance can defend you against financial losses.

In 2020, nearly 18,000 homes and other structures were burned by wildfires in the United States.

Homeowners insurance provides coverage for your home itself, other structures on your property, your landscaping, personal belongings, and additional living expenses if you need to live elsewhere while your home is being repaired.

Dwelling coverage is the part of your insurance that takes care of your home's structure, paying to repair or rebuild it if a fire damages or destroys it. This also covers attached structures like a garage, deck, or porch.

Other structures on your property, such as fencing, driveways and walkways, garages not attached to your home, sheds, and more, are also covered. Your other structures coverage limit is generally set at 10% of your policy's dwelling limit.

Your possessions and personal things are covered under personal property insurance, which will pay for the costs of cleaning or replacing any items harmed by smoke from a wildfire. This includes things like clothing, furniture, electronics, decorations, and more.

There will typically be limits applied to what belongings are covered, so be sure to review your homeowner's insurance policy to determine whether your coverage limits for personal property are sufficient.

Your insurance typically won't cover damage caused by neglect, such as failing to fix faulty wiring. If you intentionally set your home on fire, your insurance won't cover the damages.

If the act of arson was committed by someone else without your knowledge or involvement, insurance generally covers it. This means that if your home is damaged in a wildfire caused by a neighbor's negligence, your insurance should cover the damages.

Your coverage also has limits, meaning there's a maximum amount the insurance company will pay out. For example, if your policy covers your home up to $300,000, and the cost to rebuild is $350,000, you'd be responsible for covering the extra $50,000.

Your insurance policy likely has exclusions and limitations that you should be aware of. Insurance typically won't cover damage caused by neglect, such as failing to fix faulty wiring.

There are cases where insurance may cover damage caused by someone else, like arson. However, if you intentionally set your home on fire, your insurance won't cover the damages.

Your coverage has limits, which means there's a maximum amount the insurance company will pay out. If your policy covers your home up to $300,000 and the cost to rebuild is $350,000, you'll be responsible for covering the extra $50,000.

Similarly, if your personal property coverage is capped at $100,000 but the total value of your belongings is $120,000, you'll need to cover the additional $20,000 yourself.

Claims Limits and Deductibles are essential to understand when dealing with homeowner insurance claims. Your insurance carrier will only pay out for damages up to the limits of your policy.

Every homeowner's insurance policy has a deductible that you must pay out-of-pocket before your coverage begins. This amount can vary depending on the policy terms.

Having a high deductible can mean lower monthly premiums, but it also means you'll pay more out-of-pocket when you file a claim. On the other hand, a low deductible means higher monthly premiums, but you'll pay less when you file a claim.

Your insurance carrier won't pay for damages that exceed the limits of your policy, so it's crucial to understand these limits and plan accordingly.

Contact your insurance carrier directly to start the claims process if you've been impacted by a wildfire in California.

Your insurance carrier will let you know if you're eligible for additional living expenses.

The Insurance Information Institute provides information to help victims of wildfires navigate their claims.

Filing a claim with various insurance carriers in California will vary slightly, but most try to streamline the process as much as possible.

It may be necessary to secure assistance from a wildfire insurance attorney to deal with difficult insurance carriers.

Working with an adjuster can be a crucial part of the insurance process. Your insurance company will assign an adjuster to your case after you've filed your claim.

Their job is to assess the damage and determine how much the insurance company should pay for repairs or replacement of your property. Be present during the inspection and walk the adjuster through the damage.

Provide any documentation you've gathered and don't be afraid to ask questions or clarify anything that seems unclear. Cover damaged walls, doors, windows, and roofs with plastic sheeting or plywood after the inspection is complete.

If you feel the adjuster's assessment is not fair or accurate, you have the right to get a second opinion. You can hire a public adjuster or an independent contractor to provide an additional estimate.

Filing a claim can be a daunting task, especially after a wildfire has ravaged your home. You'll need to contact your insurance carrier directly to start the claims process.

The Insurance Information Institute offers valuable resources for victims of wildfires to navigate the claims process. They can provide you with the support and guidance you need to get started.

Your insurance carrier will let you know if you're eligible for additional living expenses, which can help you cover temporary housing and other expenses while your home is being repaired. This can be a significant relief, especially if you're unable to return to your home.

The process for filing a claim with various insurance carriers in California will vary slightly, but most try to streamline the process as much as possible.

Excess and surplus lines insurance is a type of property insurance that covers risks that are too high for a regular insurance company to take on. This includes extreme wildfire risk, which is becoming increasingly common in areas like California.

Home insurance direct premiums written in California by excess and surplus carriers almost tripled since 2018, increasing in 2021 to $235 million. E&S insurance companies take on more risk than regular insurers, which makes this type of coverage typically more expensive than standard homeowners insurance.

If you're looking into excess and surplus lines insurance, consider the following companies: Cincinnati Specialty Underwriters, Chubb Custom Insurance, Lexington Insurance, North Light Specialty Insurance, and Scottsdale Insurance.

As you work with insurance, it's essential to consider who else can help protect you in case of unexpected events. Extended replacement cost or guaranteed replacement cost coverage can be added to your home insurance policy to further protect your home from wildfire damage.

Having a comprehensive home insurance policy is crucial, and you may also want to consider adding other coverages to safeguard your property. You can add extended replacement cost or guaranteed replacement cost coverage to your home insurance policy to further protect your home from wildfire damage.

In addition to these coverages, it's also a good idea to consider the types of insurance policies that can help you recover from losses. Consider adding extended replacement cost or guaranteed replacement cost coverage to your home insurance policy to further protect your home from wildfire damage.

By understanding who can help protect you, you can make informed decisions about your insurance policies and ensure you have the right coverage in place.

Your homeowners insurance policy likely covers several types of protection, including your home itself.

In the event of a wildfire, your insurance will cover the cost of repairing or rebuilding your home. This is reassuring to know, especially if you've invested a lot in your home.

Other structures on your property, such as a garage or shed, are also covered by your homeowners insurance policy. This means you can rest assured that these valuable assets are protected.

Your landscaping, including plants and trees, is also covered by your policy. This is a nice surprise, especially if you've spent a lot of time and money on your outdoor space.

If you need to live elsewhere while your home is being repaired, your insurance will cover additional living expenses. This can be a huge relief, especially if you're not sure how long the repairs will take.

Your personal belongings, including furniture, clothes, and electronics, are also covered by your policy. This means you can replace these items quickly and easily if they're damaged or destroyed in a wildfire.