What is fire insurance?
Fire insurance is a type of property insurance that covers the losses and damages caused due to fire. Along with property or homeowner’s insurance, purchasing this policy helps you to cover the cost of repair, replacement, and re-construction of property, even above the limit set by the usual property insurance policy. However, this policy typically excludes the general causes as nuclear risks, war or such other similar perils.
What do you mean by the term ‘breaking down’ in fire insurance?
A typical fire insurance policy includes financial coverage for additional living expenses or loss of property due to uninhabitable situations, like fire. This is also applicable if the personal property gets damaged or any nearby structure also faces similar kind of harm. As a home owner, you need to document your property with all the belongings, in order to simplify the assessment of items lost or damage due to a fire.
A fire insurance policy also includes additional coverage against damage done due to water or smoke because of a fire incident, and this policy is effective for one year. After the expiration of the policy, you can renew it according to the updated conditions mentioned.
Some standard insurance policies for homeowners also include coverage for fire. If that is excluded, you need to purchase fire insurance separately, especially if your property contains valuable items including electronic appliances, gadgets, furniture, antique show pieces, clothes, books, and such other things. Generally, the liability of the insurance company is limited by the value of the policy and not by the extent of loss or damage sustained due to fire.
How do I know about the deductibles?
According to the state insurance law, a California insurance agency needs to calculate its own premium amount, subject to the approval of the California Department of Insurance (CDI). However, you should ask for quotes from at least three such insurers and then compare all the quotes and coverage given by them. Then you need to determine the coverage, deductibles, and the limits to give your property and the belongings complete financial protection, in an event of fire.
California law prohibits fire insurance companies from unreasonably denying and/or delaying payment of your homeowner fire insurance policy benefits when a valid insurance claim is made; to do so is considered “bad faith“.
Your California fire insurance claim (or claim for water damage) should be handled fairly and quickly without delay. As California fire insurance attorneys, we can see to it that you are not a double victim of the California wild fires.