Fire Insurance

Fire insurance helps simplify recovering from fire traumatic damage & losses. Read a guide on the top fire insurance options for U.S. homeowners in 2021.

Fire damage is a majorly destructive & emotionally scarring type of domestic disaster to experience. Fire devastates your finances but also permanently damages building structures & property. Experiencing & escaping from a fire from inside a burning building is one of the most terrifying ordeals for homeowners and families to experience. Fire insurance helps recovering from fire damage & rebuilding your home/life as smooth a process as possible.

Fire insurance is a type of property insurance, which covers losses & damages caused directly by fire. Protection provided in standard property/homeowners policies is not always adequate to cover the full value of your home/possessions, necessitating in the purchase of additional fire insurance coverage. Top providers for fire insurance are available on the market today. Average coverages/costs vary with each plan & state but affordable options are sold nationwide. Read ahead for an informative guide on the top fire insurance options for U.S. homeowners in 2021.

Fire Insurance 101

Fire insurance is a valuable purchase. It offers additional protection from damages caused by one of the most common threats to homes and personal possessions nationwide today. Fires are frequently caused by basic and normal of activities such as cooking and heating your home. Protecting the people and assets you cherish most against grave financial and residential loss is a logical and responsible thing to do as a homeowner. Many homeowners believe they have adequate protection against fire damage in their basic homeowners or property insurance policies, but not all coverage compensates for the full and/or actual value of your home & possessions.


Fire is one of the most common types of domestic disasters, therefore multiple types of insurances include standard fire-related coverage. For example, various automobile, business and homeowners insurance policies provide limited coverage for damage & losses caused by fires, pending certain conditions. One important aspect to consider regarding fire insurance involves coverage limitations. Even though protection against fire loss/damage is included in basic policy coverages, your home & possessions might be valued much higher than the maximum reimbursement amounts provided by your basic policy. To guarantee your home & family are protected against most fire-related threats it is advisable to purchase additional standalone fire insurance coverage from a top provider.

Policy Basics

Most specialized fire insurance policies prioritize the protection of your home from damages/losses caused fire & lightning strikes. While certain conditions apply, fire insurance policies include coverage for fires starting both inside and outside homes. Explosions, third-party negligence, faulty wires and burst/overflowing pipes & tanks are all scenarios covered in standalone fire insurance policies today. Coverage amounts are commonly impacted by the cause of a fire, including whether the fire was your fault or the result of a force beyond your control. Reimbursements are paid as actual cash values (ACVs) or on replacement-cost-bases, depending on policy terms.

Some homes are completely destroyed in major fires. When a home is deemed a total loss, insurance providers might reimburse an amount equal to the total current market value of the destroyed home. Lost possessions are commonly covered for an average of fifty-to-seventy percent of the total policy value. For example, a $500,000 policy might pay out between $250,000 and $350,000 for lost or damaged possessions. Payouts are commonly limited (if not excluded) on certain luxury items, as is coverage for fired caused by nuclear disasters & war.

Comparing Standalone Fire Insurance to Basic Homeowners Policies

Fire damage claims are both common and costly. Fire-related homeowners insurance claims average approximately $80,000 per claim as per the Insurance Information Institute (III). Standalone fire insurance, also referred to as dwelling insurance, provides specialized coverage related only to losses/damage caused by fires & lightning. Basic homeowners policies protect your home from many issues including fire, ice, wind, snow, hail, water damage, theft, liability and more. Basic homeowners insurance also imposes limitations on fire coverage, which could leave you without financial protection and shelter. Standalone fire/dwelling insurance covers nearly everything fire-related your homeowners insurance does not.

Top-6 Fire Insurance Providers 2021

Most fire insurance companies also sell basic property/homeowners insurance policies. If you already have a preferred homeowners insurance provider it is advisable to consult them about adding swelling insurance to your overall policy. Many companies offer discounts for bundled insurance plans.

Finding alternate fire insurance policies is relatively easy to do in modern times. USHomeInsurance, Progressive, Hippo and Insurify all provide popular fire insurance rate-comparison websites today. What makes modern insurance companies popular and successful? Reliable customer service, affordable rates and fast claim payouts without hassles are all important factors to consumers today. The top-6 fire insurance providers for 2021 are:

  • Amica (best for filing claims).

  • Lemonade (best for low rates, fast applications & simple claims).

  • Farmers Insurance (best for customizable coverages & bundle discounts).

  • State Farm (best for brand recognition & affordable rates).

  • USAA (best for current/former military members).

  • Allstate (best for fast custom quotes & top expert ratings).

Fire Insurance Benefits, Risks & Rewards

Are you unsure if you need to purchase standalone fire or dwelling insurance? The National Fire Protection Association (NFPA) states fires occur every twenty-four seconds in America, with seventy-two percent of those fires occurring in residential homes. Your home is likely your most important asset. Your loved ones and pets are the most important parts of your life, followed by your possessions. Fire insurance protects you, your family and home against one of the most common domestic disasters in existence.

Benefits of purchasing additional fire insurance include peace of mind experienced by knowing your home is covered against almost every type/cause of fire possible. Finances are protected, as is the ability to replace most lost/damaged items. Fire insurance also helps you relocate/rebuild quickly so you and your family are not displaced for long periods of time.

A risk exists in not purchasing enough fire insurance to cover the actual value of your home/possessions. Another risk is financial/budgetary in nature. All insurance involves the purchase of a product meant to protect you from possible, not definite, threats. This means you might pay higher premiums but never use the policy. Most homeowners hope to never have to use a fire insurance policy, however. The rewards of having extra fire insurance are equal to the benefits and outweigh any financial risks taken by purchasing extra protection.