After a fire has destroyed your home, it’s time to file a claim. It’s a good idea to take pictures of the damaged property so you can compare the estimate to your policy. Your insurance company will send a claims adjuster to your property, so you should verify the identity of the individual. You should also walk with the claims adjuster through the property to determine the extent of damage and review the estimate with your policy.
NFPA report
The NFPA conducts an annual study of large-loss fires, defined as those with losses greater than $10 million. Data is gathered from responding fire departments to compile this report. The report includes patterns of loss by type of property, the cause of the fire, and whether or not automatic suppression and detection systems were installed. Despite this, the fire service reports are not always comprehensive. Hence, there is always a need for more data to provide accurate estimates.
The fire in this case originated in a third-floor oversized walk-in closet. A discarded tea light candle ignited the plastic cover on a stereo, which caused the fire. Fortunately, occupants were alerted by detectors, and a sprinkler was activated before firefighters reached the floor. Despite the sprinkler activation, the fire door was propped open, causing smoke to fill the room and spread to other areas.
NFPA’s report on property damage caused by fire provides some interesting details on property damage from wildfires in 2010 and 2014. It includes property damage from structure, vehicle, and outside/other fires. The NFPA reports the cause of fires, and the estimated value of each. Listed below are some of the key findings of this report. So, while the statistics on the number of fires in this country are quite interesting, it is worth a look.
Fire statistics are not complete without data on the number of fatalities and property damage. While the NFPA annual survey of fires is a good source of data, it is not the main source of this information. Fires reported to NFPA are often categorized according to the severity of the fire. This helps researchers identify fires that may have a high number of deaths and property damage. The numbers are rounded to the nearest ten, so they can identify large-loss incidents.
Sources
Most fire accidents are the result of carelessness or human error. People fail to properly protect electrical wires and gas lines, causing fires and resulting in significant property damage. The intensity of fires varies from small to catastrophic. Electrical equipment, cooking, and gas leakages are among the major causes of fire damage. Those who neglect to secure electrical equipment can suffer from serious financial losses. In addition, many people do not have the necessary knowledge of how to protect themselves from fire.
A recent report by the National Fire Protection Association reveals interesting information about the causes and costs of fires. The study covers fires in all sectors, including vehicles, buildings, and structures. According to the report, each fire can cause more than $31 million in property damage. In 2017, approximately 488,900 fires occurred in homes, and about 26,000 house fires were caused by faulty wiring. Fire departments in the United States responded to a structure fire every 24 seconds, resulting in a total loss of nearly $468 billion in damages.
Commercial buildings are one of the main sources of property damage caused by fire. Nonresidential buildings tend to be bigger and more expensive than residential homes. This makes their contents more valuable. Most fires in nonresidential buildings occur in kitchens. Nearly all of these fires are small, confined fires. These fires cost homeowners around $2.1 billion each year. In addition to damage to buildings, smoke damages clothing and the surrounding environment.
A wildfire can also destroy an entire neighborhood. In the case of California, the Cedar Fire, which spread over an area of the San Diego-San Diego urban-wildland interface, destroyed approximately 2,400 structures. Although this fire is smaller than Fort McMurray’s, it caused more than 300,000 residents to evacuate and over 40 people to lose their lives. The devastation from wildfires is both emotional and financially devastating.
Costs
According to a new study, the average cost of a fire in California could be as much as $128 billion by the year 2020. The costs of fires in California are the highest when they destroy structures, which accounted for more than one-third of the state’s property losses. The state also experienced a record number of fires in the wildland/urban interface, which caused a further $14.2 billion in property damage.
Fire damages everything in its path and is highly dangerous. Once it breaks out, it can smoulder and release noxious chemicals that may affect the building’s structure and furnishings. While fire restoration can save you money, it can be an expensive and time-consuming process. Depending on the type of materials destroyed, restoring damaged items can cost anywhere from $200 to $6,000.
Apart from replacing your damaged property, you may have to spend some time in rented or hotel rooms until your home is repaired. This will add up very quickly. If you have personal property in your home, your insurance policy might only pay for the depreciated value of it. However, some companies are willing to pay for the entire replacement cost. In some cases, you will have to cover the rest of the costs yourself.
Once the fire is out, you can begin assessing the damages to your property. The first step is to schedule an assessment. A tradesperson will come to your property and determine what can be salvaged and what needs to be disposed. The cost of the clean up and repair will depend on the type of fire damage, smoke, and soot. Smoke and soot damage will affect the cost of the repairs, so you’ll need to know the exact cost of the project before you hire anyone to do the work.
Documentation
Fire claims are complex, and documentation is key to negotiating a full settlement. Property owners are responsible for proving their losses. In many cases, a fire loss claim kit can make the process easier by organizing documents, providing guidance through the different stages of a fire damage insurance claim. Here’s how to prepare your fire damage insurance claim documents. Follow the steps below to ensure a successful fire damage insurance claim.
First, take pictures of the interior and exterior of your property. If your home was a rental, it is especially important to gather photos and inventory of damaged possessions. Note down the exact makes and models of your damaged items. Also, take photographs of any structural elements of your home, including kitchen cabinets and countertops. This documentation will help you file a claim with your insurance company, if necessary. Lastly, don’t hesitate to include any receipts for purchases you made after the fire.
Taking pictures of the damaged items will help speed up your insurance claim process. These pictures will help your insurance adjuster understand the extent of damage caused by the fire as soon as it was discovered. Even if the fire is not in the middle of a house, the damage will be obvious. The insurance adjuster may take their time to assess the property. A picture can show a lot more accurately than a dozen words.
Exclusion
The exclusion “damage to property” can be confusing for policyholders. What exactly does it mean? In one case, the 10th Circuit Court of Appeals explained how this phrase originated and how it was used to limit the scope of the exclusion under the property damage exclusion of a general liability policy. The Court weighed in on the debate, finding that the phrase was a reasonable way to clarify coverage for certain types of property damage.
The court rejected the insured’s argument that the exclusion only applied to the “work area” area. It found that all property damage was excluded, not just damage to “that particular part of the structure.” The court did not explain the meaning of the term “that particular part.” However, the court cited case law rejecting a narrower interpretation of the exclusion and rejected the insured’s argument that the exclusion applied only to a portion of the work area.
Another common exclusion relates to the exclusion of pollution from heating equipment. Although the policy limits the liability to a 48-hour period, the policy’s coverage is limited to the loss or damage of the heating equipment, which is considered a “waste.” Fortunately, the 1998 form restores the coverage for pollution from heating equipment and expands it to include the named insured. In addition, the policy also limits the exclusions for bodily injury caused by the property.
Another exclusion involving pollution covers property damage resulting from uncontrolled or escaped fires. This exception applies to insurance claims that result from government-ordered clean-up efforts. The plaintiff can also claim for smoke-related damage. In some cases, the policy may also cover damage to neighboring buildings due to an escaped fire. If this is the case, insurers should be careful not to exclude pollution due to a fire.
