Wildfires have been around for thousands of years, but climate change seems to be compounding the problem. The last few years have been absolutely devastating for states like Colorado and California, all because of wildfires. States don’t have the resource or the manpower to deal with one of nature’s oldest disasters. So what does that mean for you? Well, if you live in an area that is in anyway at risk for wildfires, it means you need to make sure your insurance affairs are in order. Let’s take a closer look at how to do that.
Yes, it’s true that damage from fires and wildfires are often covered under a standard homeowners policy. A standard policy will cover any belongings that are destroyed by a fire through personal property coverage. Dwelling coverage will help cover the cost of repairs to the actual structure, or to completely replace it if the need arises. If you have other buildings on your property then the other structures protection clause will come into play. Those expensive fire department charges? Yes, a proper homeowners policy will help pay for those too, though often not all of it.
Like any insurance policy, not all homeowners policies are created equal. That means that while many homeowners policies include these fire coverages, many do not. Unfortunately, the one that don’t are often located in places that are at a higher than usual risk of fire dangers. After all, insurance is a data game at the end of the day. If you reside in an area that is at a high risk of fire, many insurers may not want to deal with the risk that comes with granting a policy associated with that.
Geography and fire risk are the two most important factors to consider when it comes to finding the right insurance policy to protect your finances from wildfires. The more at risk the area you live in, the more expensive your policy is going to be. It’s also worth considering the amount of coverage you may be able to get. Remember, when it comes to fire everything could be destroyed. So your coverage needs to reflect the total costs it would take to replace everything. If you live in a high-risk area, you may not be able to get coverage for that amount without an astronomical premium. That’s why a homeowners policy may not always be where you want to put all your protection.
There are additional types of fire coverage offered by many different insurers. Take the time to do a thorough industry of your assets and figure out the total amount of coverage you need of a fire policy. Then, call around and do your due diligence. Maybe a homeowners policy combined with life insurance will be enough.
If you’re a small business owner who has offices in an area at wildfire risk then you need to make sure those assets are protected as well. Luckily, the classic business owner’s policy usually covers fire damage to the building, office space, equipment and inventory. Make sure you also have business income insurance to cover any loss of profits that may occur while you get everything back up and running.
Wildfires are difficult to predict, but they are only becoming more prevalent in the United States. While any natural disaster can be a nightmare, fire is one of the few that can quickly wipe out everything you own. Don’t let that happen to your bank account too. Take the time to make sure you and your assets are properly insured from wildfire damage. Visit www.tgsinsurance.com to learn more. They’ll help you find the right policy for your lifestyle, and your budget.