Do You Need Fire Insurance in New Jersey?

New Jersey residents are at risk of wildfires, house fires, and other property fires. Fire claims are so frequent and costly that insurance companies know it's an important risk to protect against. That's why it's crucial to understand which of your insurance policies protects you from fire damage. 

Fire insurance is commonly included in your homeowners insurance and a New Jersey independent insurance agent can help you find the right policy. Here's why New Jersey residents want to make sure they understand their fire insurance policy.

What Is Fire Insurance? 

Fire insurance is a type of insurance coverage that helps pay for any property that is damaged by a fire. 

While it can be purchased as independent coverage, according to insurance expert Paul Martin, fires are so common that fire damage is included in New Jersey homeowners insurance, business insurance, and car insurance. 

Even though it's included in your typical coverages, you may want additional limits. A New Jersey independent insurance agent can sit down with you to look at your fire coverage and the details.

Property loss due to fires in the US in 2019, by type (in million US dollars)

In 2019, property loss caused by fires in structures in the United States amounted to $12.29 billion. Fires in highway vehicles caused $1.65 billion in property damage.

What Does Fire Insurance Cover in New Jersey?

Whether you're a homeowner or business owner, the fire coverage in your insurance policy will help pay for any financial damage or loss that results from accidental fires or wildfires.

In the unfortunate event that your property is involved in a fire, your insurance will cover:

• Personal belongings
• Expenses for lodging if you have to temporarily leave your home
• Expenses for meals while you're displaced from your home that go above and beyond your typical living expenses
• Detached structures on your property such as garages, fences, or sheds
• Landscaping 

In addition to the property, your fire insurance will cover specific claim types. All of the above fire damage will be covered if it's caused by an electrical, accidental, or lightning fire.  

What Doesn't Fire Insurance Cover in New Jersey?

According to Martin, the only time your fire insurance would not cover damage that is caused by a fire is if it's caused by war, nuclear radiation, negligence, or associated risks. 

Your insurance may also deny a fire insurance claim if they deem that the fire was started by an act of negligence. This means it was intentionally started or could have been prevented. 

One of the most common type of fires that is often considered an act of negligence is dryer fires. According to the US Fire Administration, failure to clean a unit accounts for 70% of dryer fires.

Property loss due to fires in the US in 2019, by property use (in million US dollars)

In 2019, property loss in apartment structures amounted to about $1.34 billion, while $4.31 billion in property damage occurred in non-residential structures.

How Much Does New Jersey Fire Insurance Cost?

Since fire damage is included in your existing insurance policies, the best way to determine the cost is to look at the premium price on your other policies. 

In New Jersey, the average homeowners insurance policy costs $1,192. Of course, this will vary greatly depending on the size, age, location, and structure of your home.

Similar factors contribute to the cost of business and auto insurance. Your New Jersey independent insurance agent can break down the potential cost of fire insurance and shop affordable quotes for you.

Do I Need Fire Insurance in New Jersey?

If you've never been threatened by a fire it can be difficult to justify learning more about your fire coverage. However, New Jersey is no stranger to wildfires and structural fires. 

Every year an average of 1,500 wildfires damage or destroy 7,000 acres of New Jersey's forests. These fires also threaten nearby homes. In addition, there are 17 injuries per every 1,000 structural fires. 

A fire can happen any place at any time, and once it starts destroying property, it can cause devastating financial loss. Understanding the fire coverage you have can help you be better prepared in the event of a fire. 

Top 10 states for wildfires ranked by number of fires and by number of acres burned, 2020

New Jersey is the eighth-ranked state for experiencing wildfires. In 2020, the state had 1,981 wildfires.

Does Homeowners Insurance Cover Fire in New Jersey?

Yes, your New Jersey homeowners insurance policy will include coverage for fire damage. Whether a fire starts from burning incense or a lightning strike to your property, fire coverage is worked into the homeowners policy.

It will even cover your home if it's damaged by a wildfire. Should your home and property be involved in a wildfire, the fire protection in your homeowners policy will cover your home, personal belongings, and assets. This is usually broken down into three categories

• Dwelling coverage
• Detached structures
• Personal property

For most New Jersey residents, the fire damage coverage in their homeowners policy will be sufficient, but you can always work with your independent agent to increase the amount of coverage you have if you feel you need more or have additional assets that wouldn't originally be covered. 

How a New Jersey Independent Insurance Agent Can Help

Even though fire coverage is included in your New Jersey homeowners insurance policy, it's still important to understand what it covers and what it does not. It's also beneficial to know the amount of fire coverage that's in your business and auto insurance. 

A New Jersey independent insurance agent knows the best types of coverage available and can help you understand and shop home and fire insurance. They'll work with multiple carriers to find you a policy and premium that works for you and protects your property.