A fire insurance company offers a policy that replaces structures or contents to the policy holder that are damaged or destroyed because of a fire. When you are choosing a fire insurance company, there are a couple of characteristics of the policy and the company that you want to look for before choosing.
First, you want to see if your regular homeowners policy covers fires, the coverage amount, the premium amount and whether it is a set cost or actual replacement cost. You should also check out the reputation of the fire insurance company with organizations such as the Better Business Bureau and the Attorney General’s office for the state where the company operates.
Before you choose a fire insurance company, first check with the company that holds your homeowners insurance policy. Find out if your existing policy already covers fire damage to your home and your belongings. Some homeowners insurance policies have fire insurance coverage already built in to the policy. If the policy covers fire damage, then find out how much coverage you have if a fire damages your home and how much coverage you have if a fire damages the contents and personal belongings of your home.
If your homeowners insurance policy does not offer enough fire insurance coverage or none at all, then you may need to increase the fire amount coverage, or find a fire insurance company that provides the type and amount of coverage you need. For example, if you are a renter, then you may wish to find a fire insurance company that simply offers coverage for your personal property. This is because the landlord or owner of the property is typically responsible for fire policy coverage for the dwelling, property or structure.
When you are shopping around for a fire insurance company, find out how much the monthly premium will be for the amount of a fire policy you need. The second thing you want to find out is how the fire insurance company calculates how much of an insurance payout it will pay in the case of a fire insurance claim. For example, some fire insurance companies work on a flat rate cost, so they will pay a certain percentage of the policy amount based on the amount of total damage to the property or the contents. Other companies will pay the actual replacement costs for the property or the contents that were damaged or lost in the fire. Essentially, you should look for a fire insurance company that returns you to the same position you were in prior to the fire occurring.