Your homeowners insurance will pay for fire damage to your home including damage to your property, the contents of the building and additional living expenses if you need to stay elsewhere while repairs are made to your home. Additional living expenses (ALE) is a great coverage option to have. It covers hotel bills, food, meals and other living expenses you may have while unable to live in your home. Without the coverage, many families would have a hard time paying for living expenses if they were forced to find temporary living arrangements after a home fire.

Any detached structures located on your property such as any sheds, fences or detached garages are also covered by most homeowners insurance policies. Some policies will also help pay for landscaping costs such as damage to trees and shrubs.

One important note—if your car or other vehicle is destroyed or damaged due to a fire at your home, this is not covered by homeowners insurance. The cost of fire damage to your car is paid for by the comprehensive portion of your auto policy. If you only have liability auto coverage, damage to your car during a home fire is not covered.

HOW many HOMEOWNERS INSURANCE COVERAGE DO I NEED FOR FIRES?

There is no one-size-fits-all formula when it comes to choosing your coverage limits. Your limit is the maximum your policy will reimburse you after a covered loss. You can set your coverage limits based on factors such as the value of your home and belongings. Here are some things to consider when choosing coverage limits:

Choosing Your Personal Property Coverage Limit
If you think you may need more coverage to replace your belongings in the event that they are damaged by fire, you may want to increase your limits for personal property. Keep in mind that your policy may offer lower coverage limits for certain items, such as jewelry. You may want to consider purchasing additional coverage to help protect those items.

You should also review your policy to find out if it offers actual cash value or replacement cost coverage. Actual cash value coverage generally helps reimburse you for the depreciated value of damaged items, while replacement cost value coverage typically helps pay to purchase a new item at today’s price.

Choosing Your Limit for Dwelling Coverage
The cost of rebuilding after a fire may not be equal to the price you paid for your home, as construction costs and home values fluctuate. 

FIRE DAMAGE THAT HOMEOWNERS INSURANCE MAY NOT COVER

Homeowners insurance may not cover all types of fire damage. For instance, if you intentionally start a fire in your home, you’ll generally find homeowners insurance will not pay to repair the damage. Homeowners insurance also typically does not cover damage caused by an act of war. Read your policy or contact your local agent to learn what risks are excluded from your coverage.

Having smoke detectors and fire extinguishers in your home is certainly a smart way to help protect yourself from fire. But, if a fire damages your home or property, homeowners insurance may help you and your family recover financially.