Wildfires and Your Homeowner's Insurance: What You Need To Know

With an average of 100,000 wildfires burning millions of miles of land in America each year, it's important to protect your home as best you can. Although the western United States is notorious for summer wildfires, it is important to realize that all par

April 1, 2010

With an average of 100,000 wildfires burning millions of miles of land in America each year, it's important to protect your home as best you can. Although the western United States is notorious for summer wildfires, it is important to realize that all parts of the country are at risk.

Every homeowner, regardless of where their home is located, needs to make sure their homeowner's coverage is sufficient and up-to-date. Be sure that your home is insured to value, that means that, in the event of a total loss (i.e., if your house is completely damaged by wildfires) you'll be covered for the entire cost to rebuild.

The most common misconception about replacement cost – one that all too many wildfire victims learn the hard way – is that the cost to rebuild your home is not necessarily the amount you paid to purchase your home, the assessed tax value of your home or the fair market value of your home. Instead, your replacement cost is the actual cost to rebuild — replace — your home. To ensure accurate coverage, make sure your insurance agent performs a Cost Estimator, the industry standard for determining the cost to rebuild.

Available Coverage for Wildfire Damage

The majority of homeowner's insurance policies provide coverage for the repair or replacement of your home. Coverage is also available if your home was damaged by smoke or soot, but not completely destroyed. Because every policy is different, and different insurance companies may have different limitations or exclusions, it's important to shop around and thoroughly evaluate the coverage options available.

You can also reduce your home's fire risk with just a few simple steps:

Don't smoke in, or around the house
Remove dead or dried out foliage, fallen leaves, cut grass and sticks
Keep your roof and gutters free of fallen leaves, sticks and other foliage
Maintain a properly hydrated lawn and landscape
Keep trees and shrubbery trimmed and watered
Do not store firewood near your house or garage
Use fire-resistant construction materials whenever possible
Install an indoor sprinkler system
Never block access to a fire hydrant

These additional safety measures are more than just common-sense ways to reduce your risk of wildfire, they may actually earn you a discount on your homeowner's insurance. Don't let wildfires catch you by surprise. Review your homeowner's policy, speak with an insurance professional, devise a plan of action and prepare yourself and your home.