Fire insurance covers losses from fire damage to a home and personal belongings, and may also provide financial assistance for temporary accommodation and cleanup. It can be part of a homeowner’s policy or purchased separately. Coverage may be invalidated if the fire was intentionally set for insurance purposes.
Fire insurance is a type of property insurance that helps offset losses incurred when a fire partially or completely destroys a home. Cover may be provided as part of your wider homeowner’s insurance policy, or in some countries it may be purchased as a form of supplemental insurance that provides benefits for any part of the damage not covered by your homeowner’s policy. Along with the replacement and reimbursement of lost items, fire insurance can also provide financial assistance in finding a new place to live and compensate the policyholder for losses not covered by a homeowner’s insurance plan.
One of the main benefits of fire insurance in general is coverage for personal belongings that are destroyed in a fire. This includes major appliances within the home, furniture, clothing and other valuables specifically covered under the terms of the policy. Separate fire insurance may be arranged to provide additional coverage not found as part of the homeowner’s policy, allowing the insured party to enjoy a wider range of coverage and benefits in the event of a fire. Typically, the policyholder must file a detailed claim identifying the items lost in the fire and, along with an estimate of the cost of replacing those items.
In addition to compensating the policyholder for the cost of items lost in a fire, fire insurance often also covers expenses that occur as a result of the fire. This includes benefits that help find and pay for alternative accommodation after the unfortunate event. If the policyholder needs to stay in a motel or other form of temporary accommodation while the fire damage is being repaired, fire insurance may include provisions to pay for such accommodation, up to a certain period of time. In addition to helping offset the cost of temporary accommodations, policy provisions will often also pay for the cleanup effort at the fire site, helping speed up repairs and allowing the homeowner to resume living in the home once again.
While fire insurance in general covers most accidents that lead to a house fire, there are some situations where your coverage would be invalidated. A common example is the deliberate act of setting fire to property in order to collect insurance. In this scenario, the insurance company would likely decline your claim and cancel your coverage. Additionally, fraud charges would likely be filed, resulting in prosecutions against the homeowner.
Smart Asset.
Protect your devices with Threat Protection by NordVPN
