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We Buy Fire Damaged Houses:Will My Homeowners Insurance Policy Cover Wildfire Damage?

 

Experts say that large portions of the Southwest, Midwest, and Western United States are all experiencing severe drought conditions.

That means the risk of wildfire is increasing for many people.

According to Verisk Analytics, a data analytics firm that evaluates insurance risk, more than 4.5 million houses in the United States have been classified as having a high or extremely high risk of wildfire.

According to information from the National Interagency Fire Center, wildfires destroyed 3,577 homes last year.

But there are more dangers besides only droughts and extreme heat. People are the main cause of wildfires, according to statistics from the Wildland Fire Management Information and U.S. Forest Service Research Data Archives, so you should also be concerned about them.

Discarded cigarettes, unsupervised campfires, burning debris, faulty or careless equipment use, and arson are all common causes of wildfires.

Knowing that fire damage is typically covered by normal homeowners, condo, or renters insurance policies may give you some comfort. What you should know about homeowners insurance and wildfires is provided below.

Wildfire Risk Statistics

States that have a high proportion of at-risk properties for wildfire destruction may experience slower recovery timeframes and more home displacements.

Currently, about 72 million properties are susceptible to wildfire devastation, experts say. They add that there is a serious or extreme risk for more than 4 million residences.

The states with the highest the highest proportion of homes with at least 0.03% risk are:

– 4.65 million houses are under risk in California.

– 4.56 million houses in Texas are at risk.

– 3.93 million properties in Florida are at risk.

– 1.89 million houses in Arizona are at risk.

– 1.14 million at-risk properties in Oklahoma

The properties with the greatest percentages of at least 0.03% danger are:

– 68.6% in New Mexico

– 66.8% for Wyoming

– Nevada: 58.7%

– Utah: 57.7%

– Kansas: 51.4%

So does homeowners insurance cover wildfire damage?

Yes, damage from fire, including wildfire, is covered by a homeowners insurance policy.

That means if a fire damages your home, the insurance offers a variety of coverage options to assist with home repairs or rebuilding, replacing personal property, and, if necessary, paying for temporary accommodations if you can’t live in the home.

More you need to know about homeowners insurance coverage

A home’s physical structure and any adjacent buildings, such as a deck or garage, are covered by homeowners policies. You will be covered up to the policy limitations, which are normally calculated based on how much it would cost to completely rebuild the house using local labor and material prices.

One thing to keep in mind: you may want to check your coverage amount.

A shortage of building supplies, especially lumber, across the country as well as labor shortages have caused prices to increase.

That means if your home is damaged by a wildfire you could be forced to foot the bill for the excess if the cost to reconstruct your home exceeds the limits of your dwelling insurance.

If your insurance provider offers extended or guaranteed cost coverage, you might want to think about adding it to your policy. A specific percentage above your dwelling coverage amount, such as 25% more, is covered under extended replacement insurance.

This provides you with some buffer in the event that prices in your area increase. However, guaranteed replacement cost pays to rebuild your home regardless of cost if you want even better protection.

Are other structures on my property also covered?

Other structures include things that aren’t connected to your home, such as a detached garage, a shed, or a fence. This form of coverage frequently depends on the amount of your housing coverage.

Your coverage for other structures, for instance, could be 10% of your coverage for your home. You would have a $25,000 cap on other structures if your dwelling coverage was for $250,000.

It’s a good idea to evaluate your policy if you recently erected any buildings, like an in-ground pool or gazebo. If you need to purchase more coverage, talk with your insurance agent.

Coverage for personal property

This coverage applies to all of your personal property, including furniture, kitchenware, gadgets, and clothing. Typically, policy limits range from 50% to 70% of your home coverage. For instance, if your personal property coverage is set at 50% and your home coverage is $250,000, you would receive $125,000 for your possessions.

Making a home inventory is a fantastic approach to find out if your personal stuff is adequately covered. Basically, make a list of everything you own and then estimate how much it would cost to replace it if a fire destroyed your house. If your current insurance coverage limitations are insufficient, you might want to get more personal property coverage.

Insurance for higher living costs

Additional living expenses coverage (sometimes known as “loss of use”) covers costs like a hotel stay, meals out, and other expenses like pet boarding and laundry services if you are unable to reside in your home due to wildfire damage.

Even if the fire never reaches your home, you can still file claims under this insurance if local authorities order an evacuation of your area.

A percentage of your home coverage is usually the standard for additional living expenses coverage. You might receive up to $62,500 for loss of use, for instance, if your additional living expenses coverage is 25% of your dwelling coverage and you have $250,000 in dwelling coverage. If you’d like, you can raise this cap as well.

Tree, shrub, plant, and lawn insurance

Trees, shrubs, plants, and lawns are frequently covered by a house insurance policy up to a predetermined proportion of your dwelling coverage.

For instance, you would have up to $50,000 to replace these items if you had $250,000 in dwelling coverage and 20% coverage for these kinds of items.

However, pay great attention to the special limits in your policy. For instance, the maximum amount that your home insurance policy will pay for any one tree, shrub, or plant is $1,500. You will be responsible for making up any difference in cost if you need to replace pricey landscaping.

Own a house damaged by fire?

One way to rid yourself of the burned home and get on with your life is to sell it in as-is condition to We Buy Fire Damaged Houses. We pay all cash and offer terrific prices. Fill out the form below to learn more.

 

Photo by Ross Stone on Unsplash

 

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