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Fire! What Does Your Insurance Cover?

fire-fighters - insurance policies

I came home yesterday to a raging fire at the home of my neighbor across the street.  As a total of 12 fire trucks roared onto my block along with police and EMS trucks my immediate thoughts were of the safety this very elderly man and his caregiver. Thankfully they were both safe.

The fire department efficiently doused the home putting out a fire that could easily have spread to other homes since the homes on that side of the street are all attached to each other from one  end of the block to other.  Also, my mother owns one of the homes across the street, and I prayed that it would not spread.  As neighbors poured out of their homes to watch the fire fighters do their job, they shared stories of the telephone service being out and their homes smelling of smoke.

Once we were assured that everything was safe, I thought of the property damage and loss that this man had surely suffered.  Even though the fire had not spread too far, the water damage may lead to mold which would require the home to be internally gutted.  The homes are beautiful Tudor style brick homes with lots of wood on the interior.  Beautiful, but horrible in a fire.

The fire reminded me to check the batteries in my alarms, and my insurance policy!  If you have not done so recently, be sure to revisit your insurance policies.  Upgrade  your insurance levels to cover the full replacement damage of not just the home, but your property as well.  Many insurance policies will not cover the following:

I mentioned that property belonging to tenants are not covered by home insurance.  You should be especially interested in this if you are a renter.  You should purchase renter’s insurance yourself.  It is incredibly cheap and just makes good financial sense to have since your landlord will most likely not cover losses that you might have sustained in case of a disaster.

Renter’s insurance will typically cover damage from fire, theft and vandalism. I have read that the average cost of renter’s insurance is $12 per month for every $30,000 of coverage.  You read that correctly.  Your car insurance is likely 10 times more than that.  Of course deductibles can range from $500 on upward, so select a level that you are comfortable with.  You can probably purchase this insurance from the same insurance companies that provide coverage for your car and life, but be sure to shop around.

One more thing to remember.  Replacing some documents can be very arduous and difficult.  I always recommend a second copy of your driver’s license at you parent’s or sibling’s home.  Consider storing important documents such as passports in fire retardant boxes at home or at safe deposit boxes at  a bank.

Has disaster ever struck your home?  How did you make it through?