Fires can happen in the blink of an eye, whether you are home or not. You may start to panic because your home houses all of your prized possessions, and anything damaged in the fire will be expensive to replace. Once the fire has started, allow the professionals to do their job to put the fire out and try to save your possessions.
Arson is a heinous act that’s often unexpected, and paying to replace everything in your home out of pocket is often expensive. That begs the question: “Is arson covered by insurance?” At BrokerLink, we don’t want you to panic, which is why we are here to offer advice about what to do if someone sets your home on fire. You will obviously need home insurance, and we can help you out. Additionally, in this guide, we will tell you if arson is covered by insurance.
About arson
What is arson? Arson is when someone sets something on fire to damage it on purpose. It is a criminal act that’s punishable if the perpetratorgets caught. In contrast, it is not considered arson when a person causes a fire by accident. That’s because it was not an intentional act. Arson is setting fire to something on purpose. Home insurance will cover accidental fires. However, you should check your home insurance policy to verify what’s specifically covered. To prevent accidental fires, you should follow our home protection tips. Who determines the causes of home fires, and what happens if it's arson? Read below to find out more:
Fire department investigation
Who determines the causes of house fires? Your local fire department and insurance company both play a role in the investigation. This is because the fire department will find out what caused the house fire. A team known as the fire investigators will see if there is any evidence of an intentional fire, including potential fuel for the fire around the source of the fire. Following the investigation, an initial fire report will be created to determine if the incident was an accident or arson.
If it is arson
Committing arson is a serious crime in and of itself. If you commit arson and attempt to make an insurance claim, it is considered insurance fraud. Both of these are considered crimes that you can be charged with if caught. That’s why if you make a fire insurance claim to get compensation from your home insurance policy, you need to have proof that the fire was accidental. Otherwise, you can get in trouble with the law.
Now that we know more about arson let’s discuss fire coverage. If your house catches on fire, you will need to make a claim with your insurance company. However, you have to find out what’s typically covered before making a claim. In the next section, we’ll discuss whether or not insurance covers arson.
How your insurance company reacts to arson
If you or someone in your home deliberately set fires, it is considered arson. Will insurance companies cover fires that you set on purpose? The short answer is no because arson claims come as a result of a criminal act. This is also the case if you hire someone else to set fire to your home. However, if someone else causes the fire or the fire is an accident, you can make an insurance claim. What type of insurance coverage do you need to do so? Let’s get into it:
Fire insurance
Fire insurance is part of basic home insurance policies. What does it do? Fire insurance allows you to pay, repair, replace, and rebuild your home after it catches on fire. In addition to covering the property, this insurance policy will help pay for any personal belongings that were damaged in the fire. You likely already have fire insurance, but additional protection options are available. Condo insurance, as well as tenant and renters insurance, usually cover fires as well.
Making a fire insurance claim
If your home catches on fire, you will need to make a fire insurance claim. When this happens, your insurance company will help pay for the damages caused by the fire. However, there are only certain situations where your insurance company will provide coverage. Here are some common fire causes that your insurance company will provide coverage for:
- Smoke damage
- Lightning
- Kitchen fires
- Gas leaks
- Electrical fires
- Faulty appliances
- Accidental fires
- Fireplaces
- Candles
These are some common causes of fire that your home insurance policy will cover. However, fire insurance policies often vary depending on your insurance company. That’s why you should ask about your policy when making a claim; coverage often varies. Now that we’ve established how to make a fire insurance claim and what it covers let’s discuss what insurance doesn’t cover.
Causes that aren’t covered by fire insurance
House fires can occur for various reasons. However, it’s important to keep in mind insurance companies will not provide coverage for everything. This is true even if you follow our tenant insurance guide when renting and get vacation property and cottage insurance for your second home. Let’s learn more about the causes of house fires that home insurance will not help you pay for:
Arson
Arson is the criminal act of setting something on fire on purpose. This can either be done on your own or by asking someone else to do it for you. If a fire investigator finds that you set the fire on purpose, you can be charged with a criminal act. Additionally, your insurance company will deny your claim once they find out that you, as a homeowner, caused the fire damage yourself.
Fraud
Insurers will not compensate you if you make a fraudulent claim. What does this mean? Basically, if you lie about the claim of the fire or the extent of the damages, insurers have the right to deny your claim. That’s why homeowners should be careful when filing a claim. Always ask the local fire department for a full report afterwards and document what happened to provide your insurance company with proof.
Criminal activity
If you are a person involved in criminal activity and this causes the fire, your insurance company has every right to deny your claim. Illegal acts not only come with legal consequences, but they also have financial repercussions. Your insurance company will cover the cost of fire accidents but will not if the act was intentional.
Out-of-date electrical connections
A basic part of fire safety is functioning electrical work. Whether you’re a homeowner or property owner, it’s up to you to keep the wiring in your building up-to-code. Faulty electrical components are hazardous to you and your tenants. Over time, they can catch on fire and potentially burn a house down. This is considered an act of negligence, and your insurance company will not compensate you for it.
Empty home
If no one is living in the home when the fire occurs, you might not get coverage. A vacant home requires its own insurance policy. It works the same as basic home and homeowners insurance, but it is primarily meant for homes where no one lives. Be sure to check on your vacant home occasionally and have the policy to make claims just in case.
Accidents happen, but the costs of fires can add up over time. You should take the steps to protect your home in case something were to happen. At the same time, you should be aware that your home insurance coverage will not pay for everything. Policies have limitations. Assuming the fire was accidental and not arson, read on to learn about the steps you need to take to file a claim.
Filing a fire insurance claim
Seeing a fire spread through your home when fire extinguishers can’t do enough is scary. After calling the fire department and having them file an initial report, there are a few steps you need to take to obtain coverage. Let us walk you through the process of filing a fire insurance claim.
First, you will open a claim. Once you do so, your insurance company will send an insurance adjuster to determine the repair costs and how much money you will need to replace your belongings. The amount of compensation you receive will be based on the cost of the home replacement.
After the assessment is done and over with, cost estimates are submitted, and assuming everything is in order, your insurer approves them. You will then list items you lost and receive a lump-sum payment for the contents claim.
If you can’t live in your home due to the fire damage, you will be compensated for food and accommodations. Once the repairs are complete, you will move back home. The claim will be finished and added to your insurance record. It’s important to note that your insurance premium might increase as a result of making a claim.
Different insurance companies will have their processes for structures covered under home insurance. However, this can give you a general idea of what to expect when submitting a claim to your insurer.
If you are accused of arson or your insurance claim gets denied
Insurance companies will not cover arson and have the right to deny your claim based on this. It doesn’t matter whether your home has significant damage or not. Here’s our advice to homeowners who get their claims denied in Ontario, Alberta, or anywhere else in Canada:
Challenge the decision
A person can challenge an insurer’s decision about their fire claim. When this happens, the insurance company will review the case, including all the evidence, such as documentation from the local fire department and law enforcement. If they miss something, your insurance company will help you cover the damages.
Get legal assistance
If you are not content with the outcome of the case and still want your home insurance to cover the damages, you can take things into your own hands. Hiring a lawyer can help you gather the evidence so you don’t have to pay a significant amount to repair your own home. Depending on the circumstances surrounding the case, this may or may not get your insurance claim approved.
The majority of detached structures that catch fire will be covered by insurance companies with the exception of arson cases. If you find yourself in a situation where your insurance company refuses to pay for the fire damages to your property, you can take action. Repairing and rebuilding a home isn’t cheap, but you should keep your policy limit in mind when making a claim.
Purchase home insurance from BrokerLink!
Are you looking for a broker for home insurance? Having one can help you find an insurance company that will compensate you for fire damage. Most home insurance policies cover fire insurance. Because most home insurance policies cover damages from accidental fires, getting one makes sense even if you didn’t have to purchase one to get approved for a mortgage.
If you are considering purchasing home insurance, consider bundling your home and auto policies. The majority of insurance companies will give you a discount when you bundle your policies together. It's a win-win in the sense that you get the coverage you need at a more affordable price.
From home insurance tax deductibles to the premiums you’ll pay, BrokerLink is here for you when it comes to all things home insurance. Our insurance experts will help you find a home policy that suits you and your needs. What are you waiting for? Use our online quote tool and reach out to one of our agents to learn more today.
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