Fire Insurance Coverage: 3 Questions to Ask Your Agent Today

5/4/2021 (Permalink)

Fire damage in Pomona, CA.

Fire Insurance Coverage

A fire can be devastating for a business: Flames can sweep through a building and destroy years of hard work within a matter of seconds. Given that fire damage is among the most frequent types of damage to commercial property, it’s critical to ensure that your Pomona, CA, building has some sort of fire insurance in place. Fortunately, your commercial property insurance likely covers fire damage to your building. Verify that you’re protected by learning the answers to these questions before a fire breaks out.

1. Which Items Are Protected Against Loss?
Your commercial property insurance covers damage to your business building and, ordinarily, at least some additional items. Examples of these items could include

Exterior structures, such as signs, fences, and garages
Inventory and supplies
Manufacturing equipment
Electronics
Office furniture

Coverage for these items varies greatly among insurance companies, so check your policy to ensure your business’s critical property is adequately covered.

2. What Kinds of Fires Are Covered?
Even for items that are covered under your policy, property insurance only pays for damage that arises from covered events. Most commercial property policies cover damage caused by natural disasters, vandalism, explosions, and fire. It is worth noting, however, that most policies’ fire insurance provisions specifically exclude damage from fires caused by equipment or appliance malfunctions, as well as certain types of electrical fires.

3. Which Fire-Related Expenses Are Included?
The total cost necessary to completely recover after a fire almost always exceeds the amount paid by a commercial property insurance company. There are a vast number of different types of fire restoration expenses that could arise, not all of which are always covered by insurance. Some common examples of fire-related expenses include:

• Smoke cleanup
  
• Water damage caused by firefighting efforts
  
• Odor remediation
  
• Fire department fees
  
• Data recovery
  
  

While most commercial property policies will include some level of fire insurance, every policy is different. Review your policy documents or contact your agent to learn more about your coverage.