As a homeowner, you must protect your home with insurance. In fact, mortgage lenders require you to get a home insurance policy. Fire damage is one of the greatest fears of any homeowner, and the thought of losing treasures can cause some anxiety. Fortunately, fire insurance can protect your home and belongings when the unexpected happens.

What Exactly Is Fire Insurance?

Fire insurance is part of home coverage, and it pays to repair, replace, or reconstruct your home in the event of fire damage. If you’re temporarily displaced from your home due to fire, this policy covers the cost of food and hotel.

What Does Fire Insurance Covers?

Fire insurance is part of your general home insurance, and it covers fires from electrical issues, faulty wiring, gas explosions, and natural disasters like lightning strikes.

What Does Fire Insurance Not Cover?

Fire insurance doesn’t protect against fires caused by nuclear radiation or war. It also doesn’t cover arson, which is deliberately setting your own home on fire, and that’s considered an intentional act. If you’re insuring a vacant house, and it’s empty for more than 30 days before the fire started, then fire insurance won’t cover that home.

How Does Fire Insurance Work?

A house fire could destroy your personal belongings. Following a loss, your insurance company will send an adjuster to your home and determine how much it will cost to repair your home.

In most cases, the amount will be based on the home’s replacement cost, but some insurance policies will pay actual cash value instead. Therefore, you need to know your home’s current value to avoid any insurance surprises following a loss. Talk to your provider or read your policy closely to understand how your fire insurance works.