Fire Insurance 101

Short-term insurance policies often include a fire section as one of their most vital components, reflecting the significant risk that fire poses to homes and businesses.

Unlike many other types of coverage, the fire section is not a “one-size-fits-all” solution and requires careful consideration to balance exposure and premium costs.

Most people accept the cover without knowing the exact implications, questions to ask, and how to ensure that their risk is correctly and comprehensively covered and noted.

Let's start at the basics: what does the Fire Section cover?

At its core, fire insurance covers damage or loss caused by fire.

But most insurers/policies go a step further and also include:

• Smoke damage

• Lightning

• Explosion

• Earthquake

• Natural floods (yes—even though it may seem contradictory)

That leads us to the next obvious question: What’s Not Covered? There are also exclusions to be aware of.

 These often include:

• Fires that are intentionally set

• Damage due to negligence

• Poor property maintenance

• DIY accidents

• Asbestos-related claims (depending on the policy)

Understanding these exclusions is key to avoiding surprises when it's time to claim.

“The time to repair the roof is when the sun is shining.”
– John F. Kennedy

Doing your footwork, a.k.a repairing the roof when the sun is shining, is the clever way to derisk yourself and protect your property from fire risks.

 Other key considerations to keep in mind:

1. Keep Your Broker in the Loop

Any time you renovate, purchase high-value items, rent out a property, or change how a property is used—tell your broker. These changes can affect your coverage.

2. Review Your Sum Insured

Many people underestimate what it costs to rebuild. Don’t forget about additional expenses like:

• Debris removal

• Architect fees

• Municipal charges

These can eat into your payout if not properly accounted for in your policy.

3. Know What You Own

An up-to-date inventory of your assets ensures you're not underinsured. It’s a simple step that’s well worth its weight.

The fire section might seem like the most straightforward part of your insurance policy—but it’s one of the most important and underestimated.

 It's about more than just bricks and mortar; it’s about protecting your home, your memories, and your family.

Make sure you understand:

• What’s covered

• What’s optional

• What’s excluded

 Because if the unthinkable happens, you’ll want the peace of mind that you’re fully protected.