A house fire can be one of the most devastating experiences in your life because it can destroy your home and everything inside. When this happens, your homeowners insurance should pay for the bulk of the damage. Most policies pay for a number of different items in relation to the loss.
House Replacement or Repair
The most basic homeowners insurance coverage typically either repairs or replaces your home after fire damage. If the fire is not that serious and it only damages a portion of your home, the homeowners insurance will pay to repair that section. If the fire completely destroys your home, the homeowners insurance should pay to replace it. Depending on what type of coverage you purchased, it may only pay for the current market value instead of what it costs to rebuild.
Personal Property
In addition to paying for the damage to the structure itself, your homeowners insurance policy should also pay for the contents inside your home during the fire. The value of the contents inside your house could be thousands of dollars and your homeowners insurance will pay to replace or repair them. This could cover items like furniture, jewelry, electronics and heirlooms. This will be paid up to your coverage limit when a fire damages your property.
Losing Functionality
Another problem that you could run into when a fire damages your house is that you lose the functionality of it. When your house burns down, you will no longer have a place to live. The insurance company should give you money so that you can pay for a place to rent while you are rebuilding your house. The insurance company should also pay you for other living expenses, such as food, while you are displaced from your home.
Injuries
If someone else is injured in your home during a house fire, they can claim the costs associated with their medical bills. They may also be able to get a settlement from the insurance company for pain and suffering. This should be covered by the liability component of your homeowners insurance. This protects you against lawsuits from other people who are injured while on your property. If you are hurt during the fire, your medical insurance should cover your care.
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