Every 88 seconds in the U.S., a fire department responds to a home structure fire, according to the National Fire Protection Association.1
Most homeowners policies cover damage from multiple types of fires, including wildfires. But if you live in an area that’s at a higher risk of wildfires, your homeowners policy might exclude wildfire damage.
Fire insurance isn’t a separate type of insurance; it’s part of a standard home insurance policy. Here’s what you should know about finding fire protection coverage for your home.
Fire is one of the main 16 perils that a basic home insurance policy covers. Your insurance will pay to repair your home’s structure if a fire causes damage. It also covers medical costs, legal liability, damaged personal property, and loss of use, which includes additional living expenses that stem from a fire event.
Unless you live in a wildfire-prone area, your home insurance policy provides coverage for accidental fire damage from the following perils:2
Your home insurance policy can also cover chimney-related fires, as long as you’ve been maintaining the chimney properly. It may not cover fires that stem from poor maintenance or negligence.
Home insurance never covers arson. It won’t cover fires that occur out of negligence or intentional foul play, though it usually covers accidental fires.
In some cases, home insurance policies may not cover wildfires, particularly in wildfire-prone areas like California and Washington. Some insurers will increase premiums or exclude coverage for wildfires. Others may not offer home insurance policies in these areas altogether.
If you live in a wildfire-prone area, you may need to purchase a separate fire insurance policy to supplement your home insurance policy. You can look into acquiring fire coverage through a difference in conditions policy (DIC) or your state-sponsored FAIR (Fair Access to Insurance Requirements) Plan for high-risk policyholders.
Difference in conditions policies are supplemental policies that fill in the coverage gaps in an existing insurance plan.
You can select coverage for specific losses and events, like damage from fires, floods, earthquakes, and mudslides. You can also combine this type of coverage with a FAIR Plan for more comprehensive home insurance coverage.3
Since most home insurance policies include fire as a covered peril, fire insurance usually won’t cost you any additional money unless you need to purchase a DIC policy to cover wildfires or a similar event. The average cost to insure a home with $300,000 in dwelling coverage is $2,532 per year, Insurify data shows.
The specific cost to cover your home will depend on various factors, including the cost of labor and building materials in your area, any high-liability features you may have (a pool, for example), and the coverage limits and deductibles you choose. You may also pay more if you’d like additional coverage for higher-value belongings, like jewelry or artwork.
Below, you can compare the average annual insurance premiums by dwelling coverage limit across many popular insurers.
Insurance companies often decline to cover fires in areas at a higher risk of wildfires since they’re much more likely to have to pay out on a claim. This can also limit a homeowner’s availability to get fire coverage since they’ll likely have fewer insurance companies to choose from.
The states in the table below have an increased risk of wildfires, according to FEMA’s National Risk Index. The national average cost of home insurance for $300,000 in dwelling coverage is $2,532 per year, Insurify data shows. As you can see in the table, a $300,000 policy in some of these wildfire-prone states can cost much more than the national average.
If you’re in an area particularly prone to fires, you may have a hard time getting insurance coverage for fire events, specifically wildfires. If this applies to you, you should shop around for coverage. Even if certain insurers exclude coverage in your area, some may simply charge you a higher premium to account for the added risk.
You can consider a FAIR Plan — a type of state-sponsored plan that offers coverage for residents. The availability, coverage types, and limits of these plans vary by state, so check with your state’s insurance department to see what’s available. Often used in tandem with a FAIR Plan, a DIC policy can also fill in the coverage gaps of your main insurance policy.
In the event of a fire, you’ll want to file an insurance claim as soon as possible to make sure your insurance company can process it quickly and you can make repairs and get your home back in good condition.
You’ll typically follow these steps to file a fire insurance claim:
Take photos and videos of any damage. You’ll need this information and documentation when filing your claim.
Call your insurance company or insurance agent if you have one. Report the incident, and give a rundown of what occurred and when.
Submit supplemental information. Send your claims adjuster any photos and videos you have, as well as the police or fire department report.
Wait for the adjuster to visit. They’ll come to your property and assess the damage.
Receive your payment. Once the insurance company finishes processing your claim, you’ll receive the insurance funds (usually via check). You can then use this money to start making repairs.
If your insurer denies your fire insurance claim, you have options. First, look at the official denial from your insurer to find the reason the company denied your claim. The insurance company may deny your claim if the policy excludes the fire event or if the fire was intentionally set. In some cases, the company may say you provided insufficient information.
If you didn’t provide enough information, you may be able to send additional videos, photos, and receipts to have the claim reopened. You can also ask for an independent appraisal of the damage or request arbitration — an out-of-court legal process to compare your and your insurer’s cases.
Finally, you can contact your state’s department of insurance or an attorney if you feel the insurer denied your claim illegally. Hiring a public adjuster may help, too. These are insurance adjusters who aren’t employed by any specific company and can give you professional help with your claim.
If you still have questions about how fire insurance works or how to file an insurance claim after a fire, the following information should help answer them.
No. Fire is one of the 16 main covered perils in a typical home insurance policy. But residents of wildfire-prone areas may face exclusions for wildfire events. In this case, you’ll need to purchase a FAIR Plan, a DIC policy, or both.
Fire insurance is part of a standard home insurance policy. Homeowners pay an average of $2,520 per year for a policy with $300,000 in dwelling coverage and a $1,000 deductible, according to Insurify data. If you live in a wildfire-prone area, you’ll likely pay more for home insurance coverage.
You can read through your policy to see if wildfires are listed as a named peril. If they are, it means your policy would cover damage from wildfires. If not, you may need to look into supplemental wildfire coverage. You can also contact an insurance agent for details about your specific policy so you know what it covers and what it doesn’t.
No. Fire insurance isn’t mandatory. But if you have a mortgage on your home, your lender will probably require you to have home insurance (which includes coverage for fires) to protect its investment.
If you don’t have a home insurance policy, or your policy doesn’t list fires as a named peril, you’d be responsible for covering any damages out of pocket. This could be very expensive if a fire completely destroyed your home and you needed to rebuild. Having a standard home insurance policy in place can give you peace of mind and protect your finances.
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