Fire Insurance: A Crucial Step In Your Protection

There are four areas to consider when buying a fire insurance coverage policy. The first three areas cover different kinds of structures on the property as well as personal property. The fourth section covers expenses incurred for living elsewhere while the home is being repaired.

Four Areas

It is essential to cover these four areas so that all of your structures, personal property and incurred expenses are paid for in case of a fire.

  • House
  • Garage, gazebo, guest house, garage apartment
  • Personal property: items inside house
  • Expenses incurred
Standard Coverage

A standard fire policy protects against losses incurred through fire or lightening. It also covers property off of the premises that fire endangers. This policy is limited to replacing damaged property and it subtracts a depreciation allowance.

Indirect losses aren’t included and have to be covered under a different contract. An example of an indirect loss is money lost because a business is interrupted. The insurance rates are decided by the caliber of the fire protection in the vicinity of the building, the construction of the structure, and what kind of activity is performed in it, and the amount of exposure to loss the structure suffers.

Additional Coverage

Additional coverage can be added in the form of endorsements. Endorsements can cover  expensive items in the home not fully covered without endorsements and code upgrades.
  • Furs
  • Jewelry
This extra coverage is essential to make sure the policyholder recoups as much of the value for jewelry and furs as possible. With code upgrade coverage, if the city has changed the building codes in such a way that will increase the expense of a rebuild, those expenses are covered under the endorsement. Without the endorsement coverage the insurance company will refuse to pay for expenses incurred because of the code upgrade.

Some companies supply endorsement insurance on a limited basis of about $10,000. Sometimes the policyholder’s losses are higher than that figure. But having the insurance reduces the loss by paying for some of it.

Identify Property

The policyholder can document his possessions by making a video of the outside of his home, any other structures and all of the personal property inside his house. This is a good way to prepare to identify property and personal property in case a fire destroys them.
  • Use video camera
  • Pan slowly

Out of Pocket

If the homeowner doesn’t have insurance and endorsement insurance then he will have to pay for rebuilding and replacing personal items, which most people can’t afford to do.


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