Wildfires and Home Insurance – Do You Have Enough Coverage?

With the news of wildfires in recent years, especially in the higher risk areas on the west coast, it may have made you wonder about your own home insurance policy – does it cover damage from wildfires?  Even though we do not live in a high-risk area in South Jersey and Pennsylvania, there have been some close calls in recent years. 

In most standard homeowner insurance policies, they usually cover damaged by fires, including wildfires.   Good news for us!  Keep in mind, that what happened in California, was due to high-risk areas more prone to wildfires – many insurance companies paused or limited writing new home insurance polices covering wildfire damage.

What happens if your insurance company stops covering wildfire damage in the future?   Hypothetically, If that were to ever happen, homeowners may have the option to obtain a state-run insurance option.  This state-run option is available in NJ under the Fair Access Insurance Requirements Plan, also known as FAIR Plan.   Pennsylvania also offers a FAIR plan for those homeowners that are not able to obtain coverage from the private insurance market, so finding out if wildfire coverage is included is a viable option.  Keep in mind that premiums under the FAIR plan may cost more than private insurance premiums, but at least you will be covered. 

To find out if you have wildfire coverage, first check with your existing policy.    Once you check and you feel it may not be sufficient coverage, then you can purchase extra insurance, specifically for wildfire as a separate endorsement or purchase standalone coverage through your state’s FAIR plan or maybe even a different private carrier.  It’s always good to compare different insurance companies, looking at different options to see which ones provide the best coverage for your needs and budget.

Bottom line, after seeing how insurance companies were no longer covering wildfire damage in California, it is in your best interest to check your own policy to make sure that you have adequate coverage not just for wildfires, but for all items pertaining to your property. 

While you are checking your insurance coverage you may also want to check your home to make sure it is protected against any potential wildfire that may cause damage.  Check out my other post “How To Safeguard Your Homes Against Wildfires” (Click Here).

I hope this helps you give your piece of mind when it comes to protecting your home against wildfires.  If you have any questions, feel free to email me at ccr@ccrsellsrealestate.com.