Purchasing or renewing homeowners insurance in fire zones is becoming increasingly difficult. Admitted insurers have issued moratoriums and non-renewals. Personal property coverage allows condo owners to recover the cost of replacing items that may be damaged by wildfire. This coverage is usually offered through an HOA master policy but can also be purchased as a separate policy.
Liability
Whether you live in a high-risk fire area or not, protecting yourself against liability from wildfire damage is important. Wildfire insurance provides liability coverage that can help pay for legal or settlement costs if you’re held responsible for fire-related injuries or property damage. In some parts of the country, wildfires are common and can cause major damage to homes. Some communities have even been forced to evacuate. The problem is that homeowners in these areas typically face higher premiums, deductibles, and canceled policies than those in low-risk areas. In addition, many insurers have stopped writing property insurance in high-risk areas altogether or are limiting the number of homes they will cover in an area. Homeowners, condo, and renters insurance typically provide a few coverage types that can help with fire-related damage. Standard insurance for wildfires policy may include dwelling coverage to help rebuild or repair the structure of your home and personal property coverage to replace your belongings. Often, these policies offer additional living expenses coverage for food, hotel stays, and other costs incurred when your home is uninhabitable after a wildfire. In addition, you can also add “other structures” coverage to your policy to help replace detached buildings like sheds and fences if a wildfire destroys them.
Additional Living Expenses
Homeowners insurance protects your house and belongings from damage, including the fires that can destroy them. Your policy might also offer additional living expenses coverage to reimburse you for temporary relocation costs if your home is uninhabitable after a wildfire. Other structures’ coverage safeguards fences, pools, detached garages, and other buildings on your property. It is typically included as a percentage of your dwelling coverage limits. If you live in a high-risk area, it’s essential to make sure that your policy has guaranteed replacement cost coverage, which would reimburse you for the amount it would take to rebuild your home with today’s standards of efficiency and safety rather than just the money that it took to build it before the fire. Also, consider supplemental building code coverage, which ensures that any rebuilt home meets current building codes.
As wildfires have increased, some insurers have begun pulling out of high-risk areas. But careful research and creative approaches (like accessing wholesale brokers or looking to state-run programs where available) can often help.
Personal Property
The last thing anyone wants is to lose everything they own because of a wildfire. Homeowners’ insurance with an added policy for wildfire will help cover the costs of repairing and cleaning up after a fire. Personal property is any movable item subject to ownership (except land or real estate). It includes furniture, clothing, jewelry, computers, and televisions. A home inventory is a great way to document and keep your property in order during a disaster. The wildfire insurance that many people purchase is often included in their homeowner’s insurance policy, but you should read the fine print to make sure. However, the amount covered will depend on your coverage and whether a named peril or an open peril policy protects your personal property. Some companies will also offer additional coverage for landscaping damages that result from the fire.
Additional Structures
Homeowners insurance generally covers other structures on your property that are not attached to your house, like fences, sheds, and gazebos. The other structures’ coverage limit is usually set at a percentage of your dwelling coverage, but many homeowners adjust this to fit their needs. You can also add extended replacement cost or guaranteed replacement cost coverage to your policy to give you peace of mind if the destruction caused by wildfires exceeds your dwelling coverage limits. You can help your house and other structures on your property withstand wildfires by creating defensible space around them. This includes removing flammable materials, such as leaf piles, unmowed lawn grass, propane tanks, and combustible wood piles, from around your structures. You should also prune and space trees to prevent them from overhanging your home. Lastly, you should choose ignition-resistant building materials for your home and other structures on your property. Ignition-resistant materials include non-combustible building materials that don’t burn, exterior grade fire-retardant-treated wood lumber, and shingles or shakes that the state fire marshal approves for use in your area. Homeowners in fire-prone areas may face astronomical premiums or even be denied coverage by insurers. If your homeowners’ insurance is too expensive or you’re being denied coverage due to a wildfire-related risk, consider a premier insurance company specializing in protecting high-value homes and offering policy perks like wildfire mitigation services and private firefighters.
