Why Is Fire Insurance Coverage Important?

If you want to know why fire insurance coverage is so important, all you have to do is take a look at some recent statistics on the frequency of home fires and the extent of the damage they have done. According to the U.S. Fire Administration, there were more than 360,000 residential fires in 2010. All told, these home fires accounted for $6.6 billion worth of damage. Taking a closer look at the causes of these fires, the organization reports 166,000 were cooking-related, 46,000 were fireplace-related and 26,000 were the result of electrical malfunctions.

A roaring fire in a fireplace.

It's likely that you partake of daily activities in your home that could leave you exposed to the possibility of a fire that could threaten your home and belongings. Cooking and keeping warm by the fireplace are not the only activities that pose a risk. So do other things, like burning candles or incense. If all of this isn't enough to convince you that having adequate fire insurance coverage for your home may be a smart idea, here are just a few more reasons:

Smoke alarms may not be enough. A properly functioning smoke alarm can be a great early warning tool that will alert you to a fire with enough time to get your family to safety and call the fire department. But, fire can spread rapidly, and getting a critical heads-up to the presence of smoke in your home is no guarantee that your home won't be seriously damaged or totally consumed by fire. Don't make the mistake of thinking that having state-of-the-art smoke and carbon monoxide detectors will prevent a fire or give you enough time to put it out.

Fire insurance coverage can bring you back in from the cold. If the worst were to happen and your house burned down, where would you go? Knowing that you have relatives who will pitch in to help you out during such a difficult time is great, but if you don't have those resources, what would you do? Most standard homeowners insurance policies that cover fire loss come with the benefit of reimbursed additional living expenses. For example, if your home is destroyed or damaged enough by a fire to the point that it's not safely habitable, a fire insurance policy will often pay for the reasonable increase in your living expenses, such as the additional cost of hotel stays, restaurant bills, etc.

Having fire insurance can save you from financial disaster. Your home is probably your most valuable asset. Failing to insure it against fire damage could put you in a precarious financial situation if you leave yourself no recourse in the event of a fire. You've worked hard all your life to have the things that you deserve—why put all of that in jeopardy by failing to have adequate insurance coverage for fire?

Fire is a commonplace occurrence. This doesn't mean that it's destined to happen to you. But if it does, having fire insurance to help cover your financial losses is a critical safety net that nobody should do without.

Thinking about covering your home against the risk of fire? Contact an Allstate insurance agent to ask about a homeowners or renters policy.

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Coverage subject to terms, conditions and availability. Policy issuance is subject to qualifications. Allstate Property and Casualty Insurance Company, Allstate Fire and Casualty Insurance Company, Allstate Indemnity Company, Allstate New Jersey Property and Casualty Insurance Company. © 2013 Allstate Insurance Company, Northbrook, IL.

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