Homeowners insurance usually covers fire damage when it’s the result of an accidental event, such as an electrical malfunction, lightning, or wildfires. Your policy may help pay for the repair or replacement of your property and personal belongings. It may also cover temporary housing expenses while your house is repaired or rebuilt.
However, there are circumstances under which your policy may not cover or limit coverage for fire damage. For instance, if you live in an area at high risk for wildfires, insurers may exclude fire damage from coverage. Still, you can typically purchase stand-alone coverage or add an endorsement to your policy.
Types of fires typically covered
Home insurance protects your home from fire-related damage when it’s the result of an accidental fire — in other words, when the fire was not preventable.
Covered events may include fire damage caused by:
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Candles
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Grease
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Electrical malfunctions, such as faulty wiring
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Wildfires, unless explicitly excluded
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Lightning strikes
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Fire pits
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Fireplaces
Your policy may also cover related smoke damage to your property and personal belongings.
What does fire damage coverage include?
When an accidental fire affects your property, your home insurance policy can provide several types of coverage, depending on the resulting damage. Here’s the coverage you can expect:
Dwelling coverage
Dwelling insurance, also known as Coverage A, is the part of your policy that pays to repair or rebuild your home’s physical structure if an accidental fire damages it. This may include walls, floor, windows, and foundation.
Personal property coverage
Personal property insurance, also known as Coverage C, will help replace your personal belongings if an accidental fire destroys them. Personal property coverage may include furniture, clothing, electronics, jewelry, and artwork.
Detached structures
Any other structures located on your property, in addition to your house, that may be destroyed or damaged by an accidental fire are usually protected by Coverage B, also known as other structures coverage. This may include sheds, detached garages, greenhouses, and gazebos.
Additional living expenses
If your home is considered uninhabitable while it’s being repaired or rebuilt following a fire, loss of use coverage, also known as Coverage D, can help pay for additional living expenses, usually for up to 12 months.
This portion of your policy usually covers:
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Temporary accommodations, like a hotel or apartment
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Transportation costs
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Pet boarding
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Grocery or restaurant bills spent in addition to your regular level of expenditure
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Relocation costs of your personal belongings
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Laundry expenses
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Parking fees
Personal liability
If a guest is injured during a fire while visiting your home, or your neighbor’s home is damaged as a result of a fire for which you are liable, personal liability insurance, also known as Coverage E, may provide protection.
This portion of your home insurance policy usually covers:
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The injured party's medical bills
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Repair costs for the person’s damaged property
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Your legal expenses if the claim escalates into a lawsuit
Every portion of your policy comes with exclusions and coverage limits. To learn more about the specific details of your policy, consult with your insurance agent.
What’s not covered by fire damage claims?
Not all causes of fire damage are covered by standard homeowners insurance policies, and even when they’re covered, coverage may be limited or have exclusions.
For example, if a car parked in your garage is damaged during a fire, your policy may not cover the vehicle.
Here are other potential exclusions and coverage limitations to consider.
Intentional acts
If you intentionally set your house on fire, your insurer won’t cover the resulting damages and loss of personal belongings. Similarly, if you or a covered family member started a fire to burn down or otherwise damage the property, your insurance likely won’t cover the damage.
Vacant homes
Your standard home insurance policy also won’t cover fire damage if your property is unoccupied for long periods, such as more than 30 days. However, a vacant home insurance policy or an endorsement to your main policy may offer coverage.
Neglect-related fires
If the fire was caused by neglect — for example, if you had a faulty wiring system that you failed to fix or replace promptly — your policy may decline coverage.
Similarly, if your home has knob-and-tube wiring (a historical electrical wiring method), you may have difficulty obtaining coverage. Knob-and-tube wiring is considered outdated and poses an increased risk of fire and electrical hazards.
Unscheduled high-value items
The personal property portion of your policy won’t cover your personal belongings in case of a fire if their value exceeds the coverage limit on your policy. This can be especially true if you have expensive jewelry, watches, or pieces of art.
The best way to ensure that your policy covers your high-value items is to schedule them. This is an endorsement that sets higher coverage limits for specific personal items.
How fire claims work with homeowners insurance
Check your home insurance policy to verify the cost of your deductible first. If the cost of repairs caused by the fire damage exceeds the deductible, you should file a claim.
Filing a claim for fire damage is similar to filing any other type of home insurance claim.
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Contact your insurance agent or carrier. They will provide you with instructions on how to secure your property, conduct an inventory of damaged possessions, contact fire restoration services, and begin the claims process.
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Conduct a thorough inventory of damaged property and items. Start by creating a detailed list of everything you lost in the fire. The list should include as much information as possible about each item, including the brand name, the cost or purchase price, the model number, a detailed description, and a copy of the receipt, if available.
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Meet with a claims adjuster or claims specialist. Your insurer will assign a claims adjuster to gather facts about the cause and extent of your damage.
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Get estimates for repairing the damage and submit them to your insurer. In some cases, you'll be able to hire your own contractor and submit receipts to the insurance company for payment. Otherwise, your insurer may arrange for contractors and repairs.
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Hold onto receipts. Keep a file specifically for every expense related to your claim. This includes all receipts for living expenses such as lodging and meals if you’re unable to remain in your home while contractors are working.
How your insurer will pay out a fire claim depends on your policy specifics.
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The dwelling coverage portion of your policy typically pays out based on your home’s replacement value, up to your coverage limit. However, some policies may pay out a claim based on actual cash value, which means payouts will reflect the depreciated value of the damaged item(s).
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The personal property portion usually only covers your items’ actual cash value — their replacement cost minus depreciation. However, you may be able to enhance coverage with an endorsement.
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Your insurer may not disburse your claim payment all at once. Instead, it might release it in multiple payments as the work of repairing your home progresses.
Additional fire protection
Your standard homeowners insurance should offer some coverage in case of fire, but you should purchase additional fire insurance coverage if you live in a fire-prone area.
Wildfire risk areas
If you live in a high-risk area, a private insurance company may decline to offer you coverage for fire damage. In that case, you can buy a Fair Access to Insurance Requirements (FAIR) insurance policy. This type of policy offers coverage to high-risk homes that don’t qualify for certain types of private coverage.
Many states offer FAIR insurance policies. They’re usually more expensive and have limited protections compared to private insurance, but can be a viable option if you can’t get coverage through a private insurer.
Extended or guaranteed replacement cost coverage
If the protection offered by your standard home policy is lower than what you might need to cover the cost of replacing or repairing your home following a fire, you can buy additional coverage.
One option is adding an extended replacement cost coverage endorsement to your policy. This is an add-on that increases the overall coverage your policy provides by a specific percentage, such as 25%.
Guaranteed replacement cost coverage is another endorsement that enhances coverage beyond your policy limits. If you have guaranteed replacement cost coverage, your insurer will cover the cost to rebuild your home even if it exceeds your limit.
Ordinance or law coverage
Ordinance or law insurance coverage can pay for additional costs of rebuilding or replacing your home, up to your policy limits, necessary to comply with local ordinances or building codes. Without this type of coverage, you may have to pay thousands of dollars out of pocket in extra damage-related expenses if your home is not in compliance.
If your home policy doesn’t already include ordinance or law insurance, you can add it as an endorsement.
Fire damage is more pervasive than you think — a home structure fire was reported every 95 seconds in 2023, according to the National Fire Protection Association. Ensuring you have sufficient coverage against fires is a crucial step in protecting your home.