According to a recent article published in the New York Times, wildfires in the U.S. have grown larger and more destructive over the years. For instance, in 2020 alone there were over 58,000 fires, more than 40% of which occurred in California per the National Interagency Fire Center (NIFC). Apart from killing at least 30 people in California, the fires also burnt down 4.2 million acres of land, destroying property worth billions of dollars, according to the Insurance Information Institute (III). This shows just how big of a threat fire is to your property and why you need to purchase the right insurance to protect your home. Read on to learn more about wildfires and insurance coverage.
Due to the prevalent wildfires in the U.S., insurance companies are now generally unwilling to insure homeowners, considering the risk at hand. For instance, in 2019 alone, insurance providers dropped at least 235,200 home insurance coverages in California, according to the Insurance Journal. While it is normal for insurance companies to withdraw their coverage when the risk is too high, the standard homeowners insurance policy covers damage from wildfires. More specifically, the wildfire coverage, which is the typical homeowners insurance policy, will provide the following coverage in the event of a fire:
Other insurance policies such as renters insurance and condo insurance may also cover damages resulting from wildfires. Additionally, your auto insurance policy may cover the damages to your car in case it also burns down in a wildfire. Take note that if you live in an area prone to wildfires, the insurance company may charge you high premiums on your home insurance policy. Also, the amount of coverage you receive from the insurer depends on the limits you have as well as the exclusions in your policy.
The amount of coverage you receive in the event of fire damage also depends on the type of policy you have with the insurance company. The coverage mainly comes in two options:
These are some of the important facts to know about wildfires and your home insurance coverage. Contact the experts at John E. Peakes Insurance Agency for the assistance you need today in purchasing the right home insurance coverage. Our dedicated team is happy to address all your coverage needs in Lancaster, California.