Wildfire is a rare occurrence, but it’s a threat due to the natural cycles of hot and dry weather. Since wildfires are caused by human behavior and threaten homes or businesses, it’s essential to understand the insurance policy options you need to protect your losses.
Wildfires Insurance Exclusions
A general homeowner’s insurance policy can exclude wildfires. The same is true for renters insurance. Most insurance policies don’t include:
- Fire damage and destruction coverage.
- Other natural disasters for commercial and personal property.
Since it’s rare for policies to include fire insurance, it’s essential to read through every detail of your insurance coverage before relying on assumptions.
Wildfires Insurance Coverage
It’s never a bad idea to add wildfires protection, even if you have fire coverage from your current home insurance policy. Having wildfires protection ensures other structures such as sheds, pools, greenhouses, and more are protected. You can get the insurance policy as a broad-spectrum fire package. These policies tend to come with a low premium since they’re limited in what type of damages they cover.
Carrying Enough Policy
Most general home insurance policies are undervalued. Your insurance policy may only pay out $150,000 for a $400,000 property renovation. Therefore, you need to choose a supplemental fire insurance policy since wildfires are so destructive. Make sure you keep your insurance policy updated anytime you increase your home’s value.