Fire Insurance
SUMMARY
Whether the cause is arson, faulty wiring or improper handling of
combustibles, a house fire is a catastrophe for the homeowners usually resulting
in significant structural damage and loss of property. An appropriate policy of
fire insurance is a must--and is a requirement if the property is mortgaged. All
homeowners policies sold in Michigan must contain coverage for fire loss and
state law requires that every fire insurance policy contains certain provisions
spelling out obligations of both the insured and insurer in the event of a fire.
This does not mean that all fire insurance policies are identical and it is very
important that you discuss your particular coverage needs with a competent
insurance agent and understand what your policy does and does not cover and what
your responsibilities are in the event of a fire.
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Policies typically include the following types of coverage for fire loss:
Dwelling--protects against loss to the structure of the dwelling. A
loss which occurs to the dwelling is typically settled on a replacement cost
basis. Replacement cost is the cost necessary to replace, repair or rebuild
damaged property to its original condition with materials of the same kind and
quality. For example, a hardwood floor would be repaired or replaced with the
same kind of wood.
Appurtenant structures--other structures on the property such as a
detached garage, are typically covered for up to 10%of the dwelling amount.
Contents--this coverage protects against lost personal property in
different amounts, depending on the policy form. Covered loss of personal
property is usually settled on an actual cash value basis. Actual cash value
means the current replacement value of property less depreciation. However, some
companies do now offer replacement
cost on personal property.
Special Items--most policies contain special limits on coverage
for items such as money, jewelry, computers, coin collections or furs. These
limits vary by company and typically do not increase the total amount of
coverage under the policy.
If you have a fire, your insurer will require you to prepare an inventory of
the home’s contents listing what items were damaged or destroyed. We strongly
urge that you take the time to inventory the items in your home prior to any
loss to aid you in the unfortunate event of a fire. If possible, list all
personal items in your home and be as descriptive as possible listing the make
of the item, the model, the year it was purchased and, if possible, save the
receipt. Photographs or videotapes are often very helpful in this process.
Every fire policy issued in the state of Michigan provides that an action
against the insurer must be commenced within one year of the loss, or
within the time period specified in the policy, whichever is longer. The
time for beginning an action is tolled from the time the homeowner notifies the
insurer of the loss until the insurer formally denies liability. Statutes of
limitations and other time limits found within the policy can be complicated and
it is imperative that you have an attorney review your policy as soon after the
fire as possible so that your rights are not lost.
Free Initial Consultation
Of course, we'll be happy
to discuss your case at no charge. Telephone our office to make an appointment
for a free consultation or to receive our brochure. 1-231-929-9700. Or
email us at
info@tovlaw.com.
Email:
info@tovlaw.com
This web site
is designed for general information only. The information presented at this site
should not be construed to be formal legal advice nor the formation of a
lawyer/client relationship.
