If you have homeowner’s insurance, then you probably feel secure knowing that should anything happen to your home, your policy will cover you. However, do you really know your policy coverage limits? In a time of crisis, many people think they have coverage only to find out they do not. That is especially true when comes to fire damage.
You may need to add on fire coverage to your policy to get enough to handle all your needs should your home become victim to a fire. Your homeowner’s insurance will usually have some fire coverage, but the limits are often low. Plus, it may exclude certain types of fires or fires caused by certain things. According to the Huffington Post, fire coverage provides additional funding that will cover extra costs from a fire and certain situations, such as wildfires, that your normal policy may not.
Max amount
The reason why your homeowner’s insurance will usually not cover all your expenses is that fire often means a total loss. The amount of your losses may far exceed the policy limits. This means your insurance company will pay out to your max limit, but you have to pay for any costs over that limit.
The need
You should take a look at your policy to see the coverage limits and to check for exclusions to coverage for fire. You may find that you need quite a bit more insurance than you already have. Most companies will offer additional fire coverage, but you will probably need to ask to add this to your policy.