Wildfires can cause a lot of damage to your home, and insurance is a pivotal way to
cover that loss. But finding a policy that meets your needs can be difficult if you live in
an area particularly susceptible to wildfires.
Some insurers will charge higher premiums, increase deductibles, or decline to insure
properties in risk areas. In these cases, a good insurance agent can help you find an
alternative that meets your needs.
Homeowners Insurance
Homeowners insurance is a crucial way to protect your home and personal belongings.
It also offers other features that can help you recover from a wildfire.
The most apparent feature of home insurance for wildfires is dwelling coverage, which
pays to repair or rebuild your house if a fire damages it. The amount of dwelling
coverage your policy provides depends on the value of your home and other structures,
like sheds and garages.
Another feature of homeowners insurance for wildfires is personal property coverage,
which reimburses you for lost or destroyed items you own. It includes things like
furniture, electronics, clothing, and more.
You can also add other types of coverage to your homeowner’s policy, including loss of
use or additional living expenses, which covers costs incurred due to being forced to
live elsewhere while your home is being rebuilt. It is a valuable addition for anyone who
lives in a high-risk area.
If you have a condo, it’s essential to make sure your condo association has an adequate
master policy that covers damages caused by wildfires. Alternatively, you can purchase
an individual master policy that covers the contents of your unit if a wildfire destroys
them.
Commercial Insurance
If your business is located in an area with a high risk of wildfires, ensuring you have the
right commercial insurance is a good idea. It can help protect you from the monetary
losses of fires and cover damage to your business’s property and contents.
Consider business interruption coverage to help you recoup lost revenue while your
business is closed down and repaired. This type of insurance will help to replace any
lost income. At the same time, your business is shut down, and it will also cover the cost
of hiring temporary employees to resume operations until you can reopen.
Some types of commercial fire policies include liability coverage to cover the cost of a
lawsuit if someone is injured on your property or as a result of your business’s activities.
However, these policies typically only have a small limit and may need to be more for
your business.
The best approach to get the most out of your commercial insurance is to thoroughly
study your policy and ask your agent any questions you may have. You can even hire a
lawyer to review your policy if you need more clarification about the terms of your
insurance policy.
In addition to property and liability coverage, your fire policy will likely cover any other
structures on your property, such as sheds, detached garages, fencing, pool houses,
and more. Therefore, owning or leasing property in an area with a high wildfire risk can
be essential.
Life Insurance
Wildfires are becoming increasingly common due to dry weather and increased
temperatures. As a result, they are causing billions in losses to property owners in the
state.
The damage to property from wildfires can be devastating, and homeowners often need
to replace their belongings and pay for temporary housing when their homes are
destroyed. Purchasing insurance can help cover these costs.
Standard home insurance policies cover dwelling structures, personal property, and
liability when a wildfire occurs. These policies also cover other structures like sheds,
garages, and fencing.
Some insurance companies will cancel your home insurance if you live in a high-risk
area, or they may refuse to renew it. Fortunately, non-renewal moratoriums prohibit
insurers from withdrawing or refusing to renew policies for specific communities.
Nevertheless, exploring your legal rights to insurance in your area of residence is
essential.
In many cases, additional coverage is also needed beyond your standard homeowners’
policy when you live in an area prone to wildfires. Buying a difference in conditions
(DIC) policy can help fill in gaps left by your main policy, such as coverage for water
damage, theft, vandalism, and liability expenses.
Auto Insurance
Comprehensive coverage will help you get reimbursed if your vehicle is damaged by
wildfire.
If a wildfire is burning around you, staying in your car and avoiding driving through the
flames is essential. It is also safest to drive slowly and with the windows closed. You
may feel uncomfortable or experience smoke inhalation, but staying in your car is the
safest way to escape danger.
A standard policy should include dwelling coverage to pay for the replacement costs of
your home in the event of a fire. It should also have personal property coverage to
reimburse you for lost belongings, including electronics, furniture, appliances, and
clothing.
Some homeowners insurance companies require an inspection of your home before
they will renew or insure you. These inspections are designed to prevent future
damage. It includes removing flammable materials, installing fire-resistant roofs and
decks, and ensuring your property is well maintained.
Often, these inspections can be costly, so it is best to check with your local insurance
agent for more information.
While most auto insurance policies do not discriminate against wildfires based on your
location, some companies may restrict coverage for this reason. It is especially true if
you live in a high-risk area or your home is near a forest.