Wildfires and insurance: things you should know
According to the U.S. Census Bureau, California experienced its deadliest and most destructive wildfire season in 2018. With a total of 8,527 fires that covered an area of 1,893,913 acres, many cities in the state are at risk of being affected by wildfires.
In fact, Sacramento is fourth highest in the nation for wildfire risk. If a wildfire were to consume the California capital, the damage to the tens of thousands of homes in the area would amount to $30 billion in repairs.
While the city itself is not in danger of burning, all of the zones in the metropolitan area, such as the El Dorado, Placer and Yolo counties, which are home to the majority of the single and multi-family residences, are expected to suffer greatly in the event of a fire.
And, although most homeowners insurance covers fire damage, residents in areas at high-risk for wildfires often have to pay extra for additional coverage.
As a homeowner, getting fire insurance is an option, but what about those looking for apartments for rent in Sacramento? Fortunately, it’s included in renter’s insurance. Fire is a covered peril, protecting against property lost as a result of a fire, including replacement cost vs actual cash value coverage.
However, insurance is becoming a very expensive necessity, and many homeowners only have coverage for part of their property. Furthermore, many insurance companies are known to increase their rates for additional coverage and may drop or decline to renew the policies of their clients.
Therefore, it’s important to be as well informed as possible when it comes to moving to a fire-prone area. It’s easy to underinsure a home. For this reason, getting an average quote for homeowners insurance should be among the first things you do when looking for a place to live. For those who already own a home, insurance is calculated based on the cost per square foot to rebuild, as well as the current value of the home, not the value at the time of purchase.
Moreover, increase in homeowners insurance usually don’t reflect the amount of coverage, but rather inflation and rising costs of business endeavors. Consequently, an inventory of the entire home and everything in it is essential to ensure protection and coverage in the event of a wildfire.
The more familiar you are with your insurance coverage options for wildfires, the better prepared you’ll be to deal with the aftermath and recovery – should such a tragic event ever occur.