House Contents Insurance » Fire

Why Should You Have Fire Insurance In Home Insurance Policy

Sun, 13 Jun 2010 06:14:00 +0000

Homeowners insurance policy is undoubtedly a very important form of policy that we must take, if we own a home. Among the basic covers that are given in this policy, fire is one of them. There are some important things that you should consider while going for a fire insurance policy. While some homeowners pay the cash value for the possessions that are razed due to fire, there are others that pay replacement value only. So how do you know which one should you go for?

It is thus important to find out the coverage that you need as far as the fire insurance policy is concerned. The cash value policy pays you for the present cash value that your possessions command. For instance, if you buy a mobile phone for $500 two years ago, and in the event of its destruction by fire in present circumstances, the insurance company will pay only the present worth of the phone, which will substantially less of what it was couple of years ago.

In case you go for the replacement cost, then the fire insurance company will pay whatever it costs to replace that item today, according to the present circumstances. So, if you had bought the phone say, two years ago, and if it is ‘phased out’ and no longer being manufactured, the insurance company will pay the money as a replacement cost for a comparable product.

Though on the face of it, you may want to go for the fire insurance policy that covers replacement costs, in case of expensive items like jewelry and artwork, you may go for the ‘cash value’ option in the fire insurance, because insurance companies tend to put a cap on high valued items. Also since items like jewelry and other valuables tend to appreciate in value over the years, it is better to get the right price for these items.

One of the things that matters while choosing a good fire insurance policy for your home is the cost of the deductible and how it can influence the price of the premium that you pay on a monthly basis. The deductible is the money that you have to shell out of your pocket, before the insurance company pays the claim. If you can afford a higher deductible, the premium money becomes small and you will be saving a lot of money.

To make sure that you get the right claim amount in the fire insurance policy, keep a track or rather, an inventory of personal possessions. Take pictures or make a video of these valuables. You should be able to prove to the insurance company the value of these items when the need arises. Of course, you should not keep these inventory lists or materials that prove the value of these possessions in your home (unless there is a fireproof safe), lest they may be burnt or destroyed through an unpredictable event of fire. So, it is better to keep them at a trusted person’s place or in a safe deposit box of the bank.

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Insurance Related Steps You Can Take to Protect Yourself From a Fire Loss

Sat, 12 Jun 2010 23:55:59 +0000

Have you ever really thought about what would happen if you lost your home in a fire? If you live in a fire prone area, you may have thought about it and concluded, “It will never happen to me.” If you have ever evacuated, you might have had a tiny ball of fear in the pit of your stomach, and thought, “Gosh, I hope everything is OK.” If you have ever sat in your car and watched walls of flame and smoke sweep through your neighborhood, you have probably bargained with Fate, thinking, “If we get through this, I’ll be more prepared, I promise.”

In 2007, a fire started by downed power lines and driven by 60-80 miles-per-hour winds, swept through Malibu. The Sheriffs’ Department came to our home at 4:30 AM and told us we had 15 minutes to evacuate.

After the fire, I spoke to my neighbor, whose home was completely destroyed. I asked her how she was doing, and her reply was that she and her husband were busy going through their credit card charges for the last five years trying to identify things they had purchased, and the cost. Can you imagine having to do that?

The first thing you must do is make sure you have adequate insurance coverage. Could you rebuild your home, or buy one of equal quality with your insurance proceeds? Is your home insured for cost, or replacement value? If it is insured for replacement value, does it have a built-in inflation or cost of living adjustment? You owe it to yourself to know the answers to these questions.

Equally important is the insurance on the contents of your home. Chances are that you are under-insured. Take a look at your policy and see what the dollar coverage is. Think about it. Walk through your house and add up the replacement cost of the bigger items, your furniture, television set(s), clothing, and jewelry. You can ask your insurance agent to send someone out to help you determine the adequate amount of coverage. Yes, it may result in a higher premium. No one wants to spend money unnecessarily, but a couple of hundred dollars extra per year in the premium may be money well spent.

Second, you need evidence of what you have inside your house. There are companies who will come to your home and make a videotape of all your belongings. An alternative idea is to take pictures of your most valuable items, but why not have a documented record of everything you own on videotape? If your home burned down, how long would it take just to make a list of its contents? A videotape will insure that you don’t miss anything and that there will be no disputes as to whether you actually had all the items you claim. Your insurance agent can recommend local companies who can do the videotaping.

Third, if you have any receipts or appraisals for your more expensive possessions, set them aside. You may want to make a list of the cost of your more valuable items if you don’t have receipts or appraisals. Your videotape and documentation should be kept in a safe deposit box. It won’t do you any good if it gets burned up with the house.

While on the subject of insurance, you might find out if it covers loss of landscaping. It either does, or it doesn’t. I lost 20 mature trees in the fire. I was amazed, and pleased, to find out that my homeowner’s insurance provided coverage for the lesser of either the actual value lost, or $2,500, per shrub.

Finally, if your house should burn down, there are professional consultants/engineers who will help you negotiate replacement value with your insurance company. If you suffer such a loss, these people will probably find you. In case they don’t, you should know they exist and consider hiring one to assist you. They do it for a living, you would be doing it for the first time.

Kurt Kamm writes novels about fires and firefighters. A resident of Malibu, he has lived through several wildland fires. He is a regular visitor at the fire camps, stations and training academies of L.A. County Fire Department and CalFire. To learn more about his novels, One Foot in the Black, and Red Flag Warning, visit Kurt Kamm.

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Wed, 09 Jun 2010 02:24:54 +0000

My house has major fire, water, smoke destruction and is almost gutted due to a fire which appears to have originated in the house next door. Any advise on how to learn about my rights with dealing with insurance claims, and how to re-build? Also, anything else that I might not be thinking about at this moment? Thank you.

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