Fire damage is one of the covered perils in the renter's insurance policy, however, you must make sure that your renter's policy covers perils and is not an all-risk policy. Therefore, if you have the right policy covers almost all damage done by smoke, forest or wildfire and water used to contain the fire, will be covered. Even if you have to evacuate your home the physical property will still be protected by this policy. Furthermore, due to the panic that sets in when being evacuated, many people do not use this option, however, if your home is deemed as non-habitable, you are entitled to have accommodations covered by your insurance. This means that if you must reside in a hotel, they must cover the expenses of the room as well as other living expenses usually up to about 2 weeks. This rule however does not apply when you voluntarily evacuate, it only comes into play when you are forced to evacuate by local authorities.
When Does Renters Insurance Not Cover Fires?
While wildfires are typically covered by the basic renter's policies, there are certain cases in which a fire may not cover specific types of damage. For example, if you started a fire intentionally and the property got damaged, that is not covered under any insurance policy and you will be liable to pay for any damage done yourself. Another situation is when damage is done to the actual building and you are a renter. Because the property is not owned by you, you as the renter will not have to use your renter's insurance to cover the damage done. This will instead be handled by the landlord's insurance policy as it is their property. If the landlord's insurance company comes after you for losses, your renter's insurer should be able to help defray the costs, as long as the fire was an accident. Furthermore, if your car gets damaged, that is not covered under renter's insurance. Your car insurance is liable for any damage done to the body of your car.
Fire Damage To Your Personal Property
In the case of a forest or a wildfire, if your personal property is damaged your renter's insurance policy will give you a cash payout to cover the damage or replace the damaged item. All losses will be covered up to your coverage limits, which you can refer to on the policies declaration page. When you file a claim for personal property, you'll also have to pay a deductible, which is the amount you pay on a claim before the insurance company picks up the rest. For example, if a fire destroys your $3,000 sofa, and you have a $500 deductible, the renter's insurance company will pay you $2,500 to replace the sofa after you pay them the $500 deductible. Fire damage also does not just include items that are inside your home. For example, your laptop and a suitcase of your clothes are inside it, your renter's insurance may reimburse you for the cost of your laptop and suitcase contents while your car insurance will cover damage to the car itself.
Loss-of-Use Coverage and Fire Damage
Loss-of-use coverage is when you are no longer able to use your home and therefore the insurance company must provide coverage. This policy covers the additional expenses that it would take when you are displaced in the case of peril. Because fires can cause long term effects and may force you to evacuate which entails that you live in a hotel and possibly have a longer commute to work or school, you may be compensated for those additional costs under your renter's policy. Where your insurance company provides for you to stay, however, is decided by the policy that you carry. Most insurers will pay for you to stay at a hotel or a new rental similar to your own. One important piece of information to note however is the fact that this rule only applies if you are forced out of your home. You must be required to evacuate by local authorities to claim the loss-of-use coverage. You cannot simply voluntarily leave your home and then demand to be compensated for leaving.