What Is Fire Insurance California?

Fire insurance California is a type of insurance that can cover the losses to the property of the insured, arising out of peril fire. Purchasing fire insurance in addition to the insured’s existing homeowners’ policy could help the insured cover the cost for its reconstruction. In addition, this insurance could provide replacement cost of the property, in case a fire damaged the entire dwelling. Also, fire insurance can cover the insured’s personal properties, if procures damages that are due to peril fire. On the other hand,  homeowners insurance could also cover damages that are due to fire, however, fire insurance would cover the damages that are above the set limits of the insured’s existing insurance policy.

Fire Insurance

Why Do You Need Fire Insurance california Policy?

In the year 2018, approximately, there are 500,000 reported fire damages in the United States, according to the National Fire Protection Association. Also, 80% of these damages were homes, and the remaining were public buildings. Relatively, these fire damages caused injuries to individuals, and fatality rises to almost 2% of the injured. Besides, these fire damages bring about 10 billion dollars in property losses.

Fire insurance is a great help to every homeowner and business owners throughout California. A business owner that is not insured for damages due to fire will have to pay the full cost of repair for its building if the incident occurs. Also, business owners without fire insurance will have to pay fire department services fees with their own pocket money. Same as to all homeowners without fire and homeowners insurance. 

Key Takeaways:

  • Purchasing adequate fire insurance coverage limits, can improve the chances of homeowners and business owners, survive a massive financial loss if a fire loss occurs.
  • Injuries of the insured and anyone living on the insured building is not covered under this policy. Get a free quote for Health Insurance policy to prevent a financial loss if an injury occurs due to fire.

Coverage Of Fire Insurance

Fire insurance would cover the dwelling of the insured, against losses due to different causes of fire. These include fire damages due to faulty electrical wirings and an explosion of gas. In addition, it can also cover damages that are due to fire brought about by lightning. Overflowing of water tanks and bursting of pipes can also be covered, which are otherwise covered on a homeowners policy. This insurance policy could cover the dwelling of the insured on either its replacement cost value or with its actual cash value.

Fire insurance policy can also cover the other structure of the insured’s building. This other structure includes the detached garage of the home, its fences, and the gazeebo. Coverage for the other structures of the building will only be applicable if it is included on the declaration page of the policyholder.

Homeowners insurance can also cover the damages to the personal properties of the insured that are due to fire. However, fire insurance would cover the damages that are set beyond the limits of the homeowner’s policy of the insured. This insurance policy could cover the personal belongings of the policyholder, such as the furniture. This furniture includes a sofa, bed, tables, and chairs. In addition, it can also cover other kitchen wares and equipment, such as refrigerators and plates and other wares.


Coverage for the accounting records, deeds, currencies, may or may not be applicable for this insurance. Some insurance providers declared these types of personal properties as uninsurable.

Fire insurance policy could give the insured additional living expenses if their houses leave them with no choice, but to vacate it. This could give the insured a payment fee, for living elsewhere, if the authorities demand the insured to vacate their houses, to prevent further life risks. In addition, it can also pay for the food, clothing, and necessary toiletries of the insured. Payments for additional living expenses coverage will be based on the insured loss of use limits per day.

Exclusions Of Coverage

  • Losses that are due to war
  • Revolution
  • Insurrection
  • Revolution
  • Theft 
  • Irresponsibility or neglect of the insured
  • Dwelling is vacant for a specific amount of time
  • The insured increases the hazard of fire damages; such as burning other undamaged personal properties so the insurer could replace the property.


Take note: Damages to the car of the insured that are due to fire would not be applicable for coverage. The insured must have an Auto Insurance policy so the damages to the car due to fire can be covered under its comprehensive coverage.

Understanding How Fire Insurance Payments Works

Fire insurance policy could cover the described property losses against fire damages. This policy provides actual cash value coverage. More specifically, this insurance policy states that the policyholder’s property is insured of its actual cash value at the time the loss occurs. For further explanation, the property must be insured to the extent of its value at the time of loss. This insurance policy would not be applicable to pay the loss, that exceeds the coverage limits of the insured. Additionally, this form specifically states that no payments are allowed to increase the cost of construction and repair of the property.

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Deductible Rate Of Fire Insurance

The deductible rate in insurance is what the policyholder agreed to pay, before the payment for the losses kicks in. The policyholder will have to pay its deductible rate, every time a loss occurs. Thus, the policyholder must choose a deductible he would be able to pay when a loss occurs. Usually, the deductible rate for fire insurance policy ranges from $500 up to a maximum $10,000. Additionally, always bear in mind that the higher the deductible, the lower the premium the policyholder would get.

How Claim-Payment Works For Fire Insurance Policy

Limits Of The Policy $500,000
Deductible Rate $500
Cost Of Covered Losses $100,000

The Claim-payment would be $95,000 (cost of covered losses, minus deductible rate, and up to the policyholder’s insurance limits) Here at Health Insurance California, we could provide you different types of insurance services that every individual should have. Get a free fire insurance quote here and start protecting your properties today.

Fire Insurance