Fire Insurance | How Fire Damage Coverage Works

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What you need to know about fire insurance

Fire insurance is one of the most important types of protection for your home. Fire is one of the most destructive forces. No homeowner wants to experience a house fire and the loss of their home and personal belongings. It's estimated there are about 24,000 residential house fires each year in Canada.

Fire insurance offers you important protection should your dwelling and personal property be harmed or destroyed by a fire. With ThinkInsure, you can compare quotes from the top insurance companies. You’ll find the cheapest rates in Ontario and across Canada for getting additional fire insurance. We’ll make sure you have adequate insurance protection for fire damage to your dwelling and belongings. Compare quotes today.

Keep reading to learn more about how insurance works for fire damage and what's covered.

What is fire insurance?

Fire insurance is included as part of your home insurance. It pays to repair, replace, and rebuild your property after a fire. It also covers any personal belongings damaged by fire. Most policies include fire protection, but you can also purchase additional protection that increases your plan limits.

You have fire insurance coverage through renters insurance and condo insurance. However, the extent of the plan will vary.

How does home fire insurance work?

Basic fire insurance is part of home insurance in Ontario and Alberta. It works the same as other types of property insurance. However, specifics will depend on if it’s part of a comprehensive, all-risk insurance or a standalone policy.

A fire insurance example

Fire insurance plans in Ontario may work slightly differently than in other provinces. But the core coverage remains the same. Here is an example of how it typically works:

"You are cooking dinner and a grease fire breaks out. Everyone gets out safely, and the fire department puts out the blaze, but there is significant damage to your kitchen. Your stove, range hood, and microwave are no longer functional. There is a lot of damage to the island. There is smoke damage on the walls and ceiling. You open a claim. Upon inspection from your insurance adjuster, there is an estimated $50,000 in damage. Your insurance will cover the cost to repair your kitchen and replace any things lost. This includes the kitchen island, stove, and all other affected areas. Your plan will also cover costs for you to stay in a hotel while your home is repaired."

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Robert Storey

2024-04-19

Thanks to Evan for his great advice and great service!

SHIRAZ HUDDA

2024-04-17

Great experience with Todd Allen, very personable and excellent customer service! Highly recommend wish I knew earlier could have saved thousand$

Paul Ricketts

2024-04-16

I would like you to know how thankful i am to have been assisted by Neil Sullivan. His courteous, prompt and thorough service should be acknowledged and applauded.

Eric Kim

2024-04-11

**Updated to 5-stars - Felicia (Supervisor) called almost immediately after this review went up - validated my concerns (ie. confirmed with system notes, that I wasn't crazy), checked everything was good now on my end, and will use the experience as coaching points. This one call has completely changed my view** Terrible broker. I was "assigned" to them when I signed up for CAA insurance (via CAA's website). In the last two weeks alone, I've had to follow up with several different agents on my request (updates to my policy, because the initial set up was also incorrect for deductible, coverage, etc). It's almost as if the agent listens to my words, says they'll get to it and call back, but in reality just hang up and move on. I mean, they're all super friendly on the phone, but actions speak louder than words, and there hasn't been much action on their end. Easily the worst insurance broker I've interacted with.

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2024-04-08

Shakir was very professional and friendly, excellent service!

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2024-04-07

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2024-04-04

Todd Allen was able to help me find a low rate for home and auto. Thanks Todd!

Matt Amaral

2024-04-04

I had my first call with Bailey Molella, and right from that call I knew I was good hands with getting me a suitable quote for my insurance . I had to do some thinking about it still so I let Bailey know that I would contact him at a later date , and he was very understanding . When I did call back it was like we had just picked up from where we had left off , lots of support lots of help from him in making sure I had the right insurance company to move forward with . He was an absolute pleasure working with and highly recommend having him as your broker .

What does fire insurance cover?

Fire insurance covers the cost of repairing and rebuilding your home. It also covers your belongings with contents insurance and detached structures on your property from a variety of common perils. These risks are outlined in your plan. They typically include:

Smoke damage
Lightning
Kitchen fires
Gas leaks
Electrical fires
Faulty appliances
Accidental fires
Fireplaces
Candles

Speak with your insurer to get clarification if you are not clear about what is covered.

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What is not covered by fire insurance?

Several house fire causes may not be covered by your insurance policy. They include:

Arson: The fire is set intentionally.
Fraudulent activity: You lied about the extent of the claim or provided misleading information.
Illegal activity: The blaze was a result of illegal activity.
Electrical not up to date: You had a faulty wire that is not up to the current building code.
Vacant home: There is no one living at the residence, and you don’t have vacant home insurance.

It’s also important to confirm you have high enough limits to pay for repairs and to replace your stuff. You'll be reimbursed up to your policy limit. Be sure to speak with your insurance advisor or company to understand your fire damage coverage.

Types of fire insurance coverage

There are several types of additional fire insurance you can get for more protection vs basic homeowners coverage:

Fire insurance as part of a comprehensive plan

In addition to it being included as standard coverage in a homeowners policy, you can get additional protection as part of a comprehensive or all-risk plan. You will have higher limits.

Standalone fire insurance

This type of plan is for fire-related claims only. It offers limited protection and does not cover other perils such as water damage or personal liability. Some insurers refer to this as fire-only insurance.

Wildfire insurance

Plans typically cover wildfires. But it’s limited. You will need to add wildfire insurance if you live in a region that is prone to forest fires. This is often included as part of an endorsement for natural disasters. You will also have some protection if you have earthquake insurance (but only if the fire is caused as a result of an earthquake).

Does insurance cover forest fires?

Forest fires are often classified as a different type of threat to property owners. If you live in a region that is prone to wildfires, you will likely be required to have wildfire insurance or an insurance endorsement that covers natural disasters. Your homeowner's policy may offer limited protection. You will need to increase your protection.

Forest fires are a threat from May to September in Canada. It's estimated there are 8,000 wildfires per year. The most commonly occur in British Columbia, Alberta, Northern Ontario, Quebec, Yukon, and Northwest Territories.

How much does additional fire insurance cost?

There isn’t a specific cost for additional fire insurance. Premiums are usually lumped in with your home policy. Rates vary based on these factors:

Your property replacement cost
How close you are to fire hydrants
Distance from a fire department
Fire safety features in your dwelling
Your location in the city
Plan limit

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How to reduce your fire insurance premium

You can reduce how much you pay by taking fire safety seriously. Insurance companies will issue you a discount if the following applies to you:

You have a centrally monitored fire alarm system.
You’re located within 300 meters of a fire hydrant.
You live close to a fire station.
You take other safety measures such as having fire extinguishers and a sprinkler system.

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How does a fire insurance claim work?

No one wants to experience a fire. But they happen. Understanding what happens next is the key to getting things back to normal as quickly as possible. These house fire insurance claims tips will help you get a better understanding of how the process works:

You open a claim
Your insurance company will send an adjuster to assess the situation.
The adjuster will work with local contractors to determine the cost of repairs and to replace your belongings.
Your fire insurance payout is based on your home's replacement cost.
Estimates are submitted, and the work is approved by your insurer.
You submit a list of items lost. You’ll receive a lump-sum payment for the contents portion of the claim.
You’ll receive compensation for food and accommodations while repairs take place if your residence is uninhabitable.
Upon completion of the repairs, you’ll move back into your home.
The claim will be closed and go on your insurance record.

Each insurer has specific steps for how claims get processed. Speak with them to get detailed instructions.

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Getting insurance after a fire

Getting insurance after a claim can be a challenge. It’s common for your premiums to increase at renewal time. So, it makes sense to assess your options. However, other insurance companies may be reluctant to offer you insurance after a major claim.

The most effective way to get insurance after a fire is to shop around and compare quotes to see what is available. They can look at what insurers are willing to offer and help you find a solution that meets your needs.

Fire insurance FAQs

What is the difference between home and fire insurance?

Fire coverage is part of a home insurance policy. It serves the same purpose of providing you with compensation in the event your home is destroyed by fire. You can get additional fire insurance as there may be limits. Speak with your advisor to ensure you have enough fire protection.

What is a fire insurance binder?

This is a document that serves as a temporary form of insurance until your policy application is processed. You can use a fire insurance binder to show you have proof of coverage. It’s commonly requested when applying for a mortgage or other types of loans. It may also be referred to as a fire insurance certificate.

Is it necessary to buy additional fire insurance?

Having additional fire coverage is not mandatory, but it’s highly recommended. Without enough coverage, if you were to have a fire, the damages may exceed your basic limit for fire damage. Depending on the cause it may not be covered. It is important to understand what fire damage is included in your policy.

Is fire insurance mandatory for a home loan?

Most financial institutions have insurance requirements as part of the loan application process, including coverage for fire. You will need to show proof of insurance to qualify for a loan or mortgage.

Does fire insurance cover negligence?

It depends on the circumstances surrounding the origins of the fire. How negligence is handled will depend on your insurance provider. Accidental negligence could be covered whereas deliberate acts of negligence could result in a claim being denied.

Does insurance cover grease fires?

Yes. Grease fires are typically covered if it’s an accident. Most types of damage are covered if the ignition is accidental. Make sure you’re clear about the coverages included when you get a quote.

What is accidental fire insurance?

Insurance is inherently designed for accidental fire damage. It covers accidents, such as a candle falling over. It also covers unexpected events such as lightning strikes or flames being spread through unforeseen circumstances – such as a fire spreading from a neighbours home.

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What are the main causes of house fires in Canada?

Many things can cause a fire in your home. As a result, there are thousands of residential fires here in Canada each year. Here are the main causes:

Cooking – grease, stove, BBQs
Heating systems – fireplaces, portable heaters, dryer
Smoking indoors
Electrical issues – overloaded outlets, faulty wiring, frayed appliance cords
Candles
Kids playing with matches and lighters
Christmas trees
Improper storage of flammable and hazardous liquids and chemicals

Canadian fire insurance statistics

These stats will give you some insights into where and how most blazes start. Cdnfirefighter.com provides the following Canadian fire statistics:

Cooking is the leading cause of home fires (27%)
About 50% of all cooking-related fire injuries were from cooking with oil
Smoking is the leading cause of home fire deaths (22%)
Kitchens are the leading area of origin (22%)
9% start in the bedroom and 8% start in the living room/family room
Most fires occur in one- and two-family dwellings
1 out of 100 preventable residential fires are fatal
In fatal, preventable house blazes, more than 1/3 of the homes didn’t have a working smoke detector

Fire safety tips

Did you know that you only have two to three minutes to get out of your home or other buildings before it becomes fully engulfed? You must take safety seriously and be prepared. Here are important fire safety tips to follow:

Keep a fire extinguisher in your kitchen and know how to use it
Never use water to put out a grease fire – smoother it
Install centrally monitored smoke detectors. Check them regularly
Never leave burning candles unattended
Have an escape plan for your family
Avoid overloading outlets or electrical circuits
Safely store all combustible items
Sleep with your bedroom door closed to prevent the spread of flames
Avoid smoking indoors

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Make sure your home is covered with fire insurance coverage

At ThinkInsure, we’ll help you compare rates and coverage for fire insurance from the leading companies. You’ll get the best rate. Contact us today for a quote and ensure your home has proper fire insurance.

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Insurance Blog And News

Read our insurance blog to get helpful tips, information and news.

2024-03-20

Get A Fire Insurance Quote

Extinguish your worries and make sure your home is covered with additional fire insurance.

Compare home insurance rates from the top providers

What you need to know about fire insurance

What is fire insurance?

How does home fire insurance work?

A fire insurance example

How to get a quote for fire insurance

1) Begin

2) Enter your details

3) Compare rates

Choose your policy

See our customer reviews

What does fire insurance cover?

What is not covered by fire insurance?

Types of fire insurance coverage

Fire insurance as part of a comprehensive plan

Standalone fire insurance

Wildfire insurance

Does insurance cover forest fires?

How much does additional fire insurance cost?

Do you have enough fire insurance?

How to reduce your fire insurance premium

How does a fire insurance claim work?

Getting insurance after a fire

Fire insurance FAQs

What is the difference between home and fire insurance?

What is a fire insurance binder?

Is it necessary to buy additional fire insurance?

Is fire insurance mandatory for a home loan?

Does fire insurance cover negligence?

Does insurance cover grease fires?

What is accidental fire insurance?

What are the main causes of house fires in Canada?

Canadian fire insurance statistics

Fire safety tips

Make sure your home is covered with fire insurance coverage

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