What’s Fire Insurance and Why Do You Need One?

Consider getting fire insurance if you want to protect your home and its contents from fire-related risks.

But what exactly is fire insurance? What does it cover? What are its benefits? In this post, we’ll talk about what fire insurance is and why you need it. 

What Is Fire Insurance?

what is fire insurance

Fire insurance is a type of property insurance that covers losses and damages caused by fire. Most property policies include some sort of fire protection, but you can get additional coverage in case your property gets damaged because of a fire.

Purchasing additional coverage helps cover repair or replacement costs beyond the limit set by property insurance. However, damages caused by a fire set on purpose are usually not covered by fire insurance.

What Does Fire Insurance Cover? 

what does fire insurance cover

Fire insurance covers accidental fires caused by different sources, such as electrical problems, gas explosions, and lightning.

Depending on the policy, the following may be covered by fire insurance:

  • The Structure
  • Appliances
  • Furniture
  • Machines
  • Stocks
  • Personal Belongings
  • Gadgets
  • Documents 
  • Additional Living Expenses
  • External Structures
  • Landscaping
  • Third-Party Liability (if the fire spreads to other properties)
  • Fire Damage Cleanup

Fire insurance policies may also offer additional coverage, such as water damage from firefighting, smoke damage, and loss of rent or income.

How Does It Work?

how does fire insurance work

To explain how fire insurance works, let’s take a residential fire as an example.

Suppose a homeowner named Ben had a fire in his house because of a faulty appliance. The fire damaged her property, burning furniture, appliances, and structural elements.

However, Ben has a fire insurance policy with replacement value coverage. Here’s how the fire insurance will usually work:

Notifying the Insurance Provider 

As soon as the fire is under control, Ben should contact his insurance provider to report the fire and start the claims process. 

Submitting Documentation

Ben has to take photos of the damaged property, get an estimate of the replacement cost, and make an inventory of the things destroyed by the fire. 

Claims Adjuster Visit

A claims adjuster sent by the insurance provider will evaluate the damage and verify the documents submitted by Ben. 


The insurance company will approve the claim after the claims adjuster verifies everything. Ben will receive compensation based on the replacement value of the damaged items. He can then use this payout to buy new furniture and appliances and rebuild or repair his property. 

Why Do You Need Fire Insurance? 

why you need fire insurance

Fire insurance financially protects you from damages by covering what you lost due to fire. 

With fire insurance, you don’t have to start from zero after a fire because you’ll get a payout to rebuild your property and replace what was in it. You also don’t need to use all of your savings to cover expenses such as construction, compensation, and repairs. 

Depending on your policy, fire insurance can also cover temporary accommodation while your house is getting fixed, plus the medical bills if someone gets injured while inside the burning property. 


Ultimately, fire insurance gives you peace of mind. Emotionally recovering from a home fire is already hard, and this insurance helps take things off your plate.

However, fire insurance should be a last resort. To protect your family and property, use a fire safety kit to prevent fire from burning down your house. Your kit should include an emergency fire blanket, fire spray or fire extinguisher, fire protection gloves, and a smoke mask. Stay safe, hero!