Fire Damage Property Casualty Insurance Strategies

3/5/2018 (Permalink)

Insurance Fire Damage Policy Coverage - Read the Details, Plan, and Be Prepared.

Most Fire damage residential insurance policies provide coverage. 

However, there is more to the story.  Coverage costs increase in high-risk areas such as near fire-prone terrain.  In Northern California whole communities have been destroyed and insurance dollars for home rebuilding skyrocket with materials and labor.  Insurance coverage promotion offering “peace of mind” quite often leave out the reality of the fine print.  Insurance adjusters ultimately decide the final costs of claims.

SERVPRO of North Shasta, Trinity & Greater Tehama Counties provides this information to help inform our local North State residents on staying informed and safe as fire season approaches.  (530) 222-0200

Insurance companies such as Farmers, Allstate and State Farm become careful after regional fires about homes they cover.  Every year large portions of California, because of the drought, Santa Ana Winds and especially large human population, burn down.  In these cases, insurers typically work with already insured property owners to handle and expedite fire claims.  Residents seeking new policies for homeowners and property insurance may not be able to obtain those policies so easily.

See the following links for further insurance risks associated with fire.

Property Casualty Insurers Association of America  - Wide range of information for water, fire, storm and disaster casualty and property damage events.

California FAIR plan – this is a last resort insurance program and helpful to take a look at.,

Additionally, Hazards Fuel (i.e. Vegetation) dried and combustion prone in the summer heat remains a top risk maintenance priority by the Redding Fire Department. Collaboration throughout Shasta County with partners at Redding Electric Utility (www.reupower.com), our Redding Parks & Recreation Department (www.reddingrecreation.org), and CALFIRE (www.shastacountyfire.org).  For more information on the hazard fuel reduction program, please contact the Redding Fire Marshal at (530) 225-4575.

Commercial entities and Businesses (City of Redding Code of Ordinances (9.20.050)) allows for annual fire safety self-inspections.  Business safety is key.  Tips on the inspection process are as follows:

1. Exit doors are fully operational and clear of debris.
2. Electrical switches and cover plate are installed and in code.
3. Extension cords in good condition.
4. All doors and exits are use appropriate signs.
5. Fire extinguishers are in date and properly pressurized.
6. Sprinkler and overhead extinguishing systems are inspected and in date.
7. Clear space for Inventory, machinery and boxes stored 18 inches from fire sprinkler systems.  

Preparing for fire damage in the Golden State requires a dual strategy.  Personal and companywide assessment and preparation are critical.  Knowing the fine print of your insurance coverage and keeping it up to date is also essential. Regional fire damage also has the economic impact of increasing construction material costs such as wood, concrete and electrical wiring.   

Talk with your insurance company and agent about an extended replacement cost endorsement. Essentially it is paying a small additional fee which provides coverage for a portion of the unexpected additional costs of rebuilding your home or business. The extended endorsement is additional coverage intended to accommodate at least a portion of any unexpected cost increases.