Will Insurance Protect Me if My House Burns Down?

Few things are more devastating than watching your home go up in flames. The emotional toll, the financial losses, and the sheer sense of displacement can be overwhelming.

After the smoke clears, the looming question many homeowners face is: Will my insurance actually cover this? The answer is: it depends.

Homeowners' insurance is meant to offer protection in times like these, but the scope of that protection varies based on the type of policy, coverage limits, exclusions, and how well the claim is handled. And unfortunately, insurance companies will do their best not to pay.

That’s why it’s so important to know how insurance works when your house burns down, what’s typically covered, what may be excluded, and what to do if your claim is denied or underpaid.

What Does Homeowners Insurance Cover in a House Fire?

Most standard homeowners' insurance policies do cover fire damage, including:

Dwelling Coverage (Your House Itself)

This covers the structure of your home, including walls, roof, floors, built-in appliances, and plumbing systems. If your house burns down, your insurer is typically obligated to pay for repairs or rebuilding, up to your policy limits.

Other Structures

This includes detached garages, fences, sheds, and sometimes guesthouses. If these structures are damaged or destroyed in a fire, they’re often covered under a separate limit, typically 10% of your dwelling coverage.

Personal Property

Your belongings, such as furniture, electronics, clothing, jewelry, are usually covered up to a certain amount. Policies may offer either actual cash value (ACV) or replacement cost value (RCV). The former deducts depreciation, while the latter pays to replace your items with new ones.

Loss of Use (Additional Living Expenses)

If your home becomes uninhabitable, your policy may cover hotel bills, meals, and temporary housing. This coverage, often called ALE (Additional Living Expenses), helps you maintain a reasonable standard of living while repairs are underway.

What Kind of Fires Are Covered?

Most insurance policies cover damage caused by:

• Kitchen fires
• Electrical fires
• Lightning strikes
• Wildfires
• Accidental fires caused by candles or heating equipment

In general, if the fire was sudden and accidental, and not due to your negligence or criminal activity, it should be covered. However, intentionally set fires, arson, or fires in vacant homes (usually defined as vacant for 30–60 days) may not be covered.

Coverage Limits and Actual Cash Value vs. Replacement Cost

Even if your claim is accepted, your payout might not be what you expect. Most policies cover your home and belongings based on either:

• Actual Cash Value (ACV): What the damaged items or home were worth at the time of the fire, accounting for depreciation.
• Replacement Cost Value (RCV): The cost to replace your home or belongings with new items of a similar kind and quality.
   

A policy with RCV generally offers more robust protection, but you’ll typically pay a higher premium for it. Many homeowners discover too late that their ACV policy doesn’t provide enough to fully rebuild or replace their belongings.

When Does Fire Damage Not Get Covered?

There are certain situations where a fire-related claim might be excluded or contested by your insurer:

Arson or Fraud

If an investigation reveals that the fire was intentionally set by the homeowner (or someone acting on their behalf), the claim will be denied, and criminal charges may follow.

Vacant Properties

If your home was vacant for more than 30-60 days without notification to the insurer, coverage may be void. Vacant homes are considered higher risk, and many policies exclude fires under these conditions.

Policy Lapses

If you’ve missed payments or allowed your policy to lapse, you may be without coverage, even if the fire was accidental.

Excluded Perils

Some causes of fire, like wildfires in high-risk zones, may require separate riders or endorsements. Standard homeowners' insurance might not cover all natural disasters unless explicitly added.

Additional Living Expenses: Loss of Use Coverage

If your home is uninhabitable, your policy’s Loss of Use section typically pays for:

• Temporary housing (hotel, rental)
• Meals
• Laundry
• Pet boarding
• Mileage for relocation

These benefits can be a lifeline, but they’re capped, both in time and amount. Some policies only cover loss of use for 12–24 months, or up to a specific dollar limit.

What Should You Do After a House Fire?

Here’s a quick step-by-step guide to take action after a fire:

1. Ensure Safety

Don’t re-enter your home until it has been declared safe by the fire department. Smoke, structural damage, or toxic fumes could pose serious risks.

2. Call Your Insurance Company

Start the claims process immediately. Be ready to provide basic information like your policy number, the date of the fire, and an overview of the damage.

3. Document Everything

Take photos and videos of the damage. Keep receipts for temporary housing, clothing, food, and other necessities. Make a list of everything you lost or that was damaged.

4. Secure the Property

If possible, board up windows or cover exposed areas to prevent additional damage from weather or vandalism. Your policy may require this as a duty to mitigate losses.

5. Request a Copy of the Fire Report

This official document from the fire department may be crucial for your insurance claim.

Wildfire Risk: What If My Home Is in a High-Risk Area?

With wildfires becoming more frequent and destructive, many homeowners in high-risk areas face shrinking options for coverage. Insurers may:

• Drop coverage altogether
• Require expensive wildfire endorsements
• Impose strict mitigation requirements (like fireproof landscaping or defensible space zones)

But here’s how you can protect yourself:

• Review your policy every year and ask your agent if you’re covered for wildfire damage.
• Request replacement cost coverage instead of ACV.
• Maintain a home inventory (photos, receipts, serial numbers) to simplify claims.
• Consider excess or umbrella insurance if your policy limits are too low.

If your wildfire claim is denied, Morgan & Morgan can help you evaluate your legal options.

When Insurance Companies Act in Bad Faith

Some insurers may use tactics like:

• Delaying the claims process
• Lowballing estimates
• Denying valid claims without explanation
• Misrepresenting what the policy covers
• Pressuring homeowners to accept unfair settlements

This is known as bad faith insurance, and it’s illegal.

If you suspect your insurance company is acting unfairly, speak with a qualified attorney. At Morgan & Morgan, we’ve helped thousands of fire victims recover the full amount they’re owed.

How a Lawyer Can Help

Insurance policies are dense and complex. A single misstep, like failing to provide sufficient documentation, missing a deadline, or not appealing a denial, can cost you thousands.

That’s where we come in.

Morgan & Morgan helps policyholders across the country understand their policy rights, file and negotiate insurance claims, and challenge denials and underpayments. Our army of over 1,000 trial-ready attorney aren't afraid to take a claim all the way to court and pursue bad faith lawsuits when necessary.

 

What Compensation Can Cover

If your insurance company honors your claim in full, you may be eligible to receive compensation for:

• Rebuilding or repairing the structure of your home
• Replacing personal belongings
• Temporary housing and related expenses
• Debris removal and cleanup
• Replacing landscaping, fencing, or outdoor features

However, navigating what qualifies, what documentation you need, and how to maximize your claim can be overwhelming. Many homeowners underclaim, leaving money on the table.

Morgan & Morgan Is Here to Help

If your home has burned down and you're struggling with your insurance company, you deserve strong legal representation. At Morgan & Morgan, we fight for policyholders, not insurers. Our fire damage attorneys know how to push back when insurers act in bad faith, and we’ll pursue every dollar you’re owed.

Contact us today for a free, no-obligation case evaluation.