understanding your insurance policy

understanding your insurance policy

Homeowner's Insurance Purchasing Tips for Properties Located in High Fire Danger Locations

by Tuĝba Van Den Heijkant

If your property is located in an area rated as "high" or "extreme" for wildfire danger, then simply purchasing a homeowner's insurance policy can be a serious challenge. And, once you find an insurer willing to write you a policy, then you need to know exactly what the policy will cover and what it won't. This knowledge is vital because you need to ensure everything you want to be insured actually is.

When shopping for a homeowner's insurance policy for property in an area where wildfire is a serious threat, use these purchasing tips:

Homeowner's Insurance Purchasing Tip: Buy a Stand-Alone Fire Policy If Homeowner's Insurance Isn't Available

If your home is located in an extreme fire danger area or in an area that has previously suffered massive wildfire damages, then you may not be able to purchase homeowner's insurance.

Typically, this is also the case if your property:

  • is located in a canyon
  • is located in an area covered with heavy brush
  • is located in a forested area

When a traditional homeowner's insurance policy isn't available, you should purchase a stand-alone wildfire policy. While this type of policy won't cover losses from major storms or other damage, it will cover your losses in the case a wildfire burns down your home.

Homeowner's Insurance Purchasing Tip: Make Sure You Include Detached Garages, Barns, and Other Outbuildings in Your Policy

If you are fortunate and are able to purchase traditional homeowner's insurance for your property, then it's important you opt to include detached garages, barns, pump houses, and all of the other outbuildings in the policy. While there will be some added cost for this coverage, it will be a whole lot less than the costs of obtaining new building permits and rebuilding after a fire.

Homeowner's Insurance Purchasing Tip: Don't Forget to Insure Landscaping

While you may not have landscaping that looks like it should be photographed for a home magazine, every tree, bush, and plant in your yard has a monetary value. And, if you have never shopped for trees, then you might be shocked to discover how expensive they can be! So, when you insure your property, make sure it covers your landscaping.

Homeowner's Insurance Purchasing Tip: Partner with an Insurance Agent in Your Local Area

Lastly, since a local insurance agent is more likely to understand the unique homeowner's insurance policy requirements in your specific area, it's always best to work with one to ensure you get the best policy possible. In fact, if you have multiple agents in your area, then getting quotes from multiple agents can be very beneficial.

Reach out to a homeowner's insurance service for more information.


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understanding your insurance policy

You keep a copy of your insurance policy in your file drawer, but do you know how to read and understand the policy? Having an insurance policy will protect you from losses, but it won't protect you from all losses. To get a better understanding of what your policy will and will not cover, read through this blog. You will learn about all different types of insurance policies and learn the terminology used in the documents that you have read. Hopefully, by the time you have read through the content here, you will know exactly where your insurance policies are lacking so you can make changes.