Miami Fire Damage Insurance: What You Must Know After a Fire Loss

partially burned home

You’ll be turning to your fire damage insurance policy when your Miami home suffers a fire.

Typically, homeowner's insurance is separated into two types: HO-2 and HO-3.

HO-2 insurance protects against approximately 18 different types of damage.

It’s typically called a Named Peril policy because it lists out what is covered, such as fire, lightning, hail, smoke, theft, wind, etc.

Note that perils such as earthquakes or floods are not covered under HO-2.

HO-3 insurance policies protect against damage not specifically exempted.

These will cover you for all losses except those named as not covered, such as power failure, nuclear hazard, ordinance of law, war, water (flood), earth movement, etc.

Cash Value and Replacement Value Insurance Policies

When you purchase your homeowner's insurance or need to use your policy, you should understand there are different ways a company can pay you.

An actual-cash value policy will pay you the purchase price of damaged items minus depreciation for the years you have owned it in your home.

A replacement value insurance policy is different than a cash value policy. A replacement value policy will cover the cost of replacing damaged property.

When compared side-by-side, a replacement value policy usually pays more because it delivers what it would cost to replace the item today and does not take depreciation into account.

Some policies also have an extended replacement value or guaranteed policy, which covers replacement costs, even if your claim exceeds your total coverage.

Fire Damage Insurance Covers Structures and Contents

Your homeowner policy covers your building and contents in case of fire. What this means is the structure of your home, and all of its contents are covered under one policy.

It's important to note that most insurance companies will only pay a certain amount for individual items, so if you own something really expensive, it's probably a good idea to get an extra policy for that item in case of fire or other damage.

It's also vital to have your belongings covered for at least half of what your house is covered for. For example, if your home is insured for $100,000, you should have your belongings covered for at least $50,000.

Temporary Displacement Coverage

When your home is damaged by fire it may be temporarily uninhabitable.

Most homeowner's fire damage insurance policies will pay for temporary housing. Whether you have to rent a living space or pay extra for food because you don't have a kitchen, your insurance policy should cover these expenses.

Although policies can vary, temporary displacement coverage is usually about 20-percent of the value of your policy. At $100,000, that would equal $20,000 to help you find a place to stay while your house is being rebuilt or repaired.

Homeowner's Fire Insurance Limitations

As with any insurance policy, your home’s policy has limitations. Your policy will cover vandalism and intentional destruction, but it will not cover you if the damage or intentional destruction was caused by you or a member of your household.

What Should Be Your Next Step After a Loss?

We encourage you to make contact with our firm. As public adjusters we understand the entire claims process backwards and forwards.

You’ve had a fire that caused physical damage to your property. It’s also causing you great emotional distress, isn’t it? How equipped do you feel to haggle with the insurance adjuster over estimates, fair settlement amounts, etc?

If you’d like someone on your side to fight for you, 1st Response Public Adjusters is here for you.

We’ll provide you a free consultation so we can calmly discuss your situation, your questions, your concerns and ultimately, explain your fire damage insurance policy, options and show you how we’re expertly equipped to negotiate against your insurer’s independent adjuster…who is not on your side, by the way.

Give us a call today or fill out the form below…

Off: 855-777-CLAIMS (2524)
Fax: 786-717-6487

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