Blog Post  Be Prepared! Fire Damage Insurance Tips for Homeowners

Now is a smart time for consumers to check in with their insurance company to make sure their policy has enough coverage in case their house is damaged by fire. 

Common Coverages

A standard home insurance policy will cover damages caused by fire, regardless of the fire’s cause, apart from an intentional loss, such as arson. Fires caused by wildfires, cooking and lightning strikes are all typically covered.

It is important for consumers to check with their insurance company that they have the appropriate limits for each of the following:

Dwelling Coverage: Dwelling coverage covers the cost to repair damages to the home or even rebuild. It is important that consumers have a limit that is substantial enough to help them rebuild their home (and any other structures they have), as the market value of their home may be significantly less than the current cost to replace the home.

Personal Property: Personal property, or contents coverage, helps to cover the cost to replace items in the home that were also lost.

Additional Living Expenses: Additional living expenses (ALE) coverage pays for some of the additional expenses a consumer may have if they are unable to live in their home because of the damage. ALE typically covers hotel bills, reasonable restaurant meals (if the consumer is staying in a hotel without a kitchen), and other living costs above and beyond normal housing expenses.

How to Be Prepared

1. Make a Home Inventory
   Creating a home inventory is a great way to be prepared and can be a very useful tool in the event of a claim. Consumers can maintain a paper list of belongings in their home with supporting photographs and receipts. Alternatively, the National Association of Insurance Commissioners (NAIC) has developed a Home Inventory app to keep a digital home inventory.
2. Decrease Risk of Fire
   Taking actions around the house can significantly decrease the chances of a fire spreading. Consumers should move flammable items such as playsets, sheds, gasoline, paint, and firewood further away from the home. Additionally, having fire resistant roofs and vents can keep embers from igniting.
3. Replace Batteries
   It is easy to forget to replace fire and carbon monoxide detectors’ batteries regularly, however, it is important to do it approximately 1 to 2 times per year.

We’re Here to Help

Protection of consumer interests is of prime importance to the Division of Insurance (DOI) and is safeguarded by providing accurate and unbiased information so consumers may make informed decisions and by intervening on behalf of consumers who believe they have been victimized by unfair business practices. Questions about insurance? Contact DOI’s Consumer Services Unit at 617-521-7794, Monday to Friday, 8:45 am-5:00 pm or email csscomplaints@mass.gov.