Fire insurance covers damage to your home and belongings caused by fire, including related damage from smoke and soot. It’s included in most standard homeowners insurance policies, but not every home qualifies for a standard policy.
Some homeowners may need to buy fire insurance on its own, such as those with a home in a high-risk area for wildfires (including parts of California).
What does fire insurance cover?
Fire insurance covers a wide range of costs if a fire damages your home or belongings. Protection includes accidental fires, lightning-related fires, and wildfires (unless otherwise excluded from your policy).
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Coverage |
What it covers |
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Dwelling coverage (Coverage A) |
Rebuilding and repair costs for your home’s primary structure and attached structures (e.g., decks, porches) |
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Other structures coverage (Coverage B) |
Rebuilding and repair costs for detached structures on your property (e.g., fences, detached garages, sheds) |
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Personal property coverage (Coverage C) |
Personal belongings (e.g., furniture, clothing) damaged by fire or smoke |
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Loss of use coverage (Coverage D) |
Temporary additional living expenses, such as hotel stays or pet boarding, when your home is uninhabitable due to covered fire damage |
What isn’t covered under fire insurance?
Fire insurance policies often exclude damage if the fire was caused by certain events or perils. Common exclusions include:
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Fires set intentionally by or at the direction of an insured
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War or military conflicts
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Damage from nuclear reactions or radiation
While wildfire damage is typically covered by standard home insurance, your policy may exclude it if you live in a high-risk area. If this is the case where you live, you may need coverage through your state’s FAIR plan.
Note: Many insurers limit coverage for things like vandalism, including fires set by vandals, if your home is vacant, meaning empty of people and belongings, for more than 30 or 60 days. If you need to leave your home vacant for an extended period, talk to your insurer about your options to ensure you’re covered.
Can you buy fire insurance on its own for your home?
Most homeowners insurance policies already cover fire damage, but it is possible to buy separate fire coverage. This can be a helpful option if your home doesn’t qualify for standard homeowners insurance or your existing policy excludes wildfire damage.
Available options depend on your home and state, but may include:
- Dwelling fire policies: Some homes, like rental homes or seasonal homes, may be insured with a dwelling fire policy. A DP-1 policy offers basic coverage for fire and certain other causes of damage, while other dwelling policy forms, like DP-2 and DP-3, provide broader protection.
- State FAIR plans: If you can’t get approved for private insurance because of wildfire risk or other factors, your state’s FAIR plan may be an option. Coverage varies by state. Some plans focus on fire and may be paired with a supplemental policy to cover additional risks, such as theft, water damage, and personal liability.
Does fire insurance pay replacement cost or actual cash value?
Most standard homeowners policies pay replacement cost for your home’s structure and actual cash value for your belongings, unless you upgrade that coverage. Here’s how the two compare:
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Actual cash value (ACV): Pays to repair or replace your property, minus depreciation for age and wear and tear. It’s often used for dwelling coverage in DP-1 and FAIR plan policies, and for personal property coverage on many standard policies.
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Replacement cost value (RCV): Pays to repair or replace your property with materials “of like kind and quality,” without subtracting depreciation. It’s typically the default for dwelling and other structures coverage under a standard home insurance policy.
ACV coverage typically comes with a lower premium, but it can leave you on the hook for a large portion of repair costs after a major fire. RCV coverage can offer better financial protection.
Do you need fire insurance if you have homeowners insurance?
If you have a standard homeowners policy, you typically don’t need additional fire insurance — it’s already included. Standalone or supplemental fire insurance may be necessary for certain hard-to-insure properties, such as homes in high-risk wildfire areas.
Mortgage lenders often require homeowners to maintain home insurance coverage that includes fire insurance before closing on a home and for the duration of their mortgage. This protects a lender’s insurable interest, or their financial stake, in your home.
How to file a fire insurance claim
While the claims process can vary from insurer to insurer, the following steps can help you get started:
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Get to safety: Make sure all occupants are out of danger and contact the fire department immediately to control the fire. Don’t go back inside until fire officials say it’s safe.
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Obtain a fire department report: Your fire department’s report, including the cause of the fire, can help support your insurance claim.
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Document damage: When it’s safe to do so, begin to document the damage to your property with photos and video evidence.
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Make emergency repairs: Your insurer generally expects you to make reasonable efforts to prevent further damage to your home, but only after it’s safe to do so. For instance, if the fire broke a window, covering the opening with a tarp could prevent rain from causing water damage while your claim is processed.
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Contact your insurer: Reach out to your insurance company to report the fire and file a claim over the phone or online. Once assigned, your insurance adjuster will give you further instructions for documenting damage and getting repairs underway.
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Save receipts for temporary living costs: If the fire forces you out of your home, save all receipts for costs like hotels, meals, and anything above your normal living expenses.
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Create an inventory of damaged personal property: Gather as much detailed information as possible about your items, including brand, model numbers, size, and other specs.
Tip: Creating and maintaining a home inventory makes the claim-filing process easier after a fire or other covered event.
Frequently asked questions
What is a fire insurance policy?
A fire insurance policy covers damage to insured property caused by fire, subject to the policy’s terms. Depending on the policy, it may also cover related risks, such as lightning and smoke.
Most homeowners insurance policies already include fire coverage. However, separate fire policies may be an option for properties that are difficult to insure through a standard homeowners policy.
Does homeowners insurance cover a fire you accidentally started?
Yes, home insurance generally covers accidental fires, even fires that started because of a simple mistake, like knocking over a candle or falling asleep with the stove on. Fires that were set intentionally by an insured under the policy, though, are not covered.
Does fire insurance cover wildfire and smoke damage?
Usually, yes. Most standard home insurance policies cover wildfires, smoke, and damage from firefighting chemicals.
How much does fire insurance cost?
The cost of fire insurance is typically included in your homeowners insurance premium. For standalone or FAIR plan coverage, fire insurance costs vary based on your property’s estimated reconstruction cost, your selected coverage options, and overall risk factors in your area.
