Does Homeowners Insurance Cover Fire Damage?

Fire insurance is as the name implies. It is an insurance policy that covers your home if there is a fire. Most homeowners policies have some form of fire protection as part of the standard package. How much the insurance covers and your deductibles vary from company to company. You should check your policy for information on how much your company will cover.



A fire insurance policy is typically used to repair or rebuild a home that was damaged by a fire. In some cases, it will also help you to replace or repair some of the damaged items.

According to The Balance, standard homeowners insurance covers most types of fire damage. All you have to do is file a claim. Fire damage insurance doesn’t just cover burn damage. It also covers smoke damage.

There are some occasions where an event is not covered by your policy. If one of these events occurs and causes your home to catch fire, your home will still be protected. Damage from the event that is not covered will not have reparations paid.

There are different types of damage that a homeowners policy covers. Dwelling, personal liability, personal property, and loss of use are covered after a fire occurs.

The dwelling coverage helps to repair portions of your home that were damaged by a fire. You can use the money to pay for contractors and materials to make your home whole again. Dwelling coverage also accounts for the smoke damage your home may suffer.

Value Penguin notes that if your house burns to the ground, dwelling coverage will cover that structure up to your limits. You will receive a “lump sum” for your home. The amount you receive could be for the cash value of your residence or to cover the “replacement costs.”

Personal Liability

Your home is on fire, and it is spreading rapidly. While you may feel that it couldn’t get much worse as you watch your family’s possessions burn before you, it actually can. If the wind shifts or your neighbors home is built too close, their home may be damaged by the fire consuming your home as well. 

Value Penguin points out that the personal liability protection clause in most homeowners insurance will help to protect you from lawsuits. This liability protection will also keep you from having to pay out of pocket for damages related to the fire from your home if it extends to your “neighbor’s property.”

Homeowners insurance fire clauses understand that it is not just the physical home structure that a fire can damage. The personal property coverage helps to replace any items that were either damaged or destroyed following a fire. Your homeowners policy will have a detailed account of what each item is worth.

Sometimes you can remain in your home while repairs are being completed. However, if your home is too damaged to stay in during that time, the loss of use clause allows you to get reimbursed for relocation & dining-related expenses.



If you are faced with utilizing this coverage, remember that you are only covered for a certain amount. Check your homeowners policy for the account percentage as it varies from company to company.

There are different types of causes that your homeowners policy covers in the event of a fire. In addition to grease, electrical, and candle fires, your policy may cover fires caused by limited natural disasters. While floods and earthquakes might not be covered on your policy, fires caused by these events would be. Not all fires caused by natural disasters are covered, so be sure to always check with your insurance company.

Grease fires usually happen in the kitchen. You are cooking something on the stove, and the grease catches on fire. While electric ranges don’t often have this particular problem, it can occur on any stove. Homeowners fire policies usually cover damages caused by this type of accident.

Power surges in your neighborhood could cause your electrical system to overload and catch fire. These types of problems are covered by homeowners insurance. Electrical fires caused by storm damage are usually covered as well.

We all know not to leave candles unattended. Even if you only step out of the room for a minute, something could happen that causes the candle to tip over and start a fire. It doesn’t matter who is responsible, fire insurance will cover it.

Accidents happen, which is why homeowners insurance covers the most common causes of fires. However, they don’t cover every cause of fire damage. Gross negligence may cause your claim to be rejected. If your home is in an area prone to wildfires or if it was intentionally set on fire, you wouldn’t be able to file a standard claim.

There are areas of the United States more prone to fighting wildfires. Damages to homes in these areas may be from mother nature, but if they are regular occurrences, chances are that your homeowners insurance wouldn’t cover them. While you may be able to add additional coverage to your existing policy, homes in these wildfire-prone areas may not be able to add coverage specifically for wildfires.

Even though you have fire damage coverage, it does not mean that you can set your property on fire and expect the insurance company to reimburse you for the damages. Arson, even of your own dwelling, is illegal. Those who decide to burn their homes to get money from the insurance company commit insurance fraud which is also unlawful.

Most homeowners insurance policies cover fire damage. There are some exceptions, and you should check your policy to make sure. However, electrical, grease, and candle fires are all familiar enough accidents that you should have no problem getting restitution.

• https://www.thebalance.com/what-is-covered-by-fire-insurance-4582475
• https://www.valuepenguin.com/homeowners-insurance-fire-smoke-wildfire-damage