From a young age, we’ve been taught about the dangers of fire, so it’s no wonder that as adults, we’re determined to protect our homes and ourselves from this ever-present risk in the form of fire insurance. While this has always been important, it’s especially so now, with fire-related incidents on the rise.
Whether you own your home, rent an apartment, or live in a condo, if this is a concern for you, then this article is a must-read. It addresses many of the most frequently asked questions about fire insurance, including whether it’s included in your home insurance policy and if it’s mandatory to have.
What Is Fire Insurance?
Fire insurance is designed to protect you financially in the event of a fire and is included as part of most home, condo, or tenant insurance policies in Canada. To confirm, check if fire is listed as a “covered peril” in your policy documents. If it is, the costs of repairing your home, replacing damaged belongings, and covering temporary living expenses could be covered, up to your policy’s limits, provided all terms and conditions are met.
Is Fire Insurance Included in Home Insurance?
Yes, most home insurance policies in Canada include fire as a covered peril, alongside other common risks like theft, vandalism, and certain types of water damage. Standalone fire insurance policies are generally not offered, as coverage for it is typically bundled into standard home, condo, and tenant insurance plans. However, you should always review your policy documents to confirm the extent of your fire coverage.
Is Fire Insurance Mandatory?
Since fire coverage is generally included in most home insurance policies, and home insurance itself is not legally required in Canada, fire insurance is not mandatory.
However, keep in mind that while home insurance may not be legally required, there could be other entities that mandate it. For example, if you have a mortgage, your bank/lender will likely require you to have home insurance since they have a financial interest in your property and want to ensure it is protected, including from fire damage. Similarly, condo associations often require condo owners to have insurance for their units that includes coverage against fires.
What Does Insurance Cover In Case of Fire?
When you have fire coverage, your insurance can often help with several aspects of the damage and recovery. For instance, contents insurance can be used to repair or replace damaged personal belongings, while additional living expenses coverage can offset the costs if your home is deemed uninhabitable and you have to relocate temporarily.
While the specific details will vary by policy, the following list provides a general idea of what insurance typically covers in the event of a fire.
- Dwelling: The cost to repair or rebuild your home and any attached structures (ex. garage) if it’s damaged or destroyed by fire
- Personal Belongings: The cost to repair or replace the contents of your home (ex. furniture, electronics, clothing) which are damaged or destroyed by fire
- Detached Structures: The cost to repair or rebuild structures on your property that aren’t attached to your house (ex. shed, fence) that are damaged or destroyed by fire
- Additional Living Expenses: The cost to temporarily live elsewhere (ex. Hotels, meals) if your home becomes uninhabitable as a result of fire
- Personal Liability: The legal and medical costs if the fire damages someone else’s property or injures them
What Are the Conditions for Fire Insurance?
As with any insurance policy, there are terms, conditions, and exclusions that apply when filing a claim due to fire damage. It’s important to review these details carefully and reach out to your insurer with any questions to ensure you’re fully aware of what is covered and what might lead to a denied claim.
For reference though, here are some of the most common conditions for fire insurance that you may encounter.
- Negligence: Fires caused by careless actions, such as leaving a candle unattended, may not be covered
- Intentional Damage: If the fire is started deliberately (arson), claims are typically denied
- Business Activities: Damage caused by fires related to commercial use of your home might not be covered unless specified in your policy
- Cars: If the fire damages your car, claims must be made under your car’s insurance policy
When Should I Call Insurance After a House Fire?
If a house fire causes significant damage, results in serious injuries, or, tragically, a fatality, contact your insurer as soon as safely possible. This will ensure you receive the answers and support you need promptly while also meeting any policy requirements for timely notification.
For minor damage, especially if repair costs are near or below your deductible, you might consider paying for the repairs out of pocket. However, this decision depends on the terms and conditions of your policy and your current financial situation.
In any case, before you call insurance after a house fire and so long as it’s safe to do so, always make sure to document the damage by taking photos or videos. This will provide proof of the fire’s impact and can assist in the claims process.
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