Home Insurance Articles
Two Types Of Fire Damage That Are Not Covered Under A Typical Home Insurance Policy
2010-05-18
Purchasing a home is usually the largest investment any of us will ever make. The chances of having to make a claim on your home insurance policy are rare, but sudden and accidental events do occur, and no one wants to be caught unprepared. Purchasing an insurance policy will cover your dwelling as well as all of your personal property inside. Imagine having to replace everything you own that has been destroyed by a fire, theft, vandalism, or other peril. The cost would be substantial and not everyone has that much disposable income to dish out on furnishings and possessions.
The purpose of a home insurance policy is to protect the owner against sudden and accidental financial losses, within certain limits, due to a number of perils. The most common perils include theft and attempted theft, vandalism, smoke, lightening, impact by aircraft or land vehicle, explosion, riot, and fire. Fire damage is usually the biggest concern for most homeowners. Normally, if a house is damaged in a fire it is considered to be a total loss. Not only is the dwelling itself usually damaged in such a state that it must be repaired or rebuilt before it is considered habitable, but smoke and water damage will have likely destroyed the personal contents inside.
However, there are certain situations in which fire damage is not covered under a homeowner's policy. If a fire has been deliberately set by the home owner, this is considered to be arson; a criminal offense. One of the main reasons that someone commits arson is in order to collect insurance money. Insurance companies are aware of this and when a claim is made as a result of a house fire, they send out investigators to assess each site to determine the cause of the fire. If the investigation shows that arson was indeed the cause, there will be no coverage.
Another case where damage caused by fire would not be covered by home insurance is if the home was vacant at the time of the fire. A home is considered to be vacant if it hasn't been resided in for more than 30 consecutive days, or if the owner has moved out and has no intention of returning. This applies whether or not the contents have been removed from the property. Again, the insurance company will launch a full investigation and if they can prove that the property was vacant, they will not provide any coverage for damages sustained.
It is important to fully understand your homeowner's insurance policy so that you are aware of the coverage and exclusions that are outlined. If you have any questions, clear them up with your agent before you need to make a claim.