How to Manage Wildfire Risk and Home Insurance

 

 Wildfires can destroy your home in seconds.

Each year, America faces many devastating wildfires. They’re becoming more severe – and more frequent.

It’s more important than ever for homeowners to manage wildfire risk. By taking certain actions on and around your property today, you can manage the risk of wildfires, ensure homeowners insurance covers you, and get the compensation you deserve after a loss.

Check your Policy for Exclusions, Coverages, and Limits

Many homeowners don’t fully understand their policy until it’s too late. There’s never a better time than today to check your insurance policy for exclusions, coverages, and limits.

Some insurers cancel home insurance policies because of wildfire risk. Others cancel policies because of overgrown brush around your home, increasing the chances of losing your home to a wildfire.

Check your insurance policy, especially any parts relating to house fires and wildfires. As wildfires become more common, insurers are increasingly looking for ways to avoid paying costly wildfire insurance claims.  

Consider Replacement Cost Versus Actual Cash Value Policies 

While checking your policy, it’s also important to consider whether you want a replacement cost or actual cash value policy.

A replacement cost policy is more expensive, but it covers the full cost of replacing your home and possessions after a loss.

An actual cash value policy is cheaper, and it pays you based on the value of your home and possessions minus depreciation.

After a wildfire burns your home, a replacement cost policy could give you enough money to rebuild your home. An actual cash value policy may not.

Clear Brush, Bushes, and Debris Within a 100 to 200 Foot Radius

If your property is surrounded by trees and brush, you have a much higher chance of losing your home to a wildfire.

Some insurance companies refuse to cover high-risk homes until the homeowner clears brush, trees, and debris within a certain radius.

Radiant heat 100 feet away from your home – say, from a wildfire – is enough to cause your home to catch on fire. 

To minimize the risk of losing your home to a fire, and to maximize compensation from your insurance company, consider clearing brush and other debris around your home regularly.

Maintain your Roof

Typically, wildfires burn homes because the roof catches on fire. Good roof maintenance can prevent you from losing your home to a wildfire.

If a wildfire is approaching your home, consider watering your roof. A wet roof could prevent sparks from catching, which could save your home. Some homeowners leave sprinklers on their roofs or hose a roof thoroughly before a wildfire to reduce the chances of losing the property.

Final Word

Wildfires aren’t going away anytime soon.
In fact, they’re becoming more severe and more widespread. As increasing numbers of homeowners deal with wildfires, learning how to manage the risk of wildfires is more important than ever.