September is National Preparedness Month, a good time to think about wildfire insurance and the risk many of us in southeastern New Mexico and West Texas live with every dry, windy season: wildfire. Between long stretches of drought, tall grass on the ranchlands, and the strong spring winds that push a grass fire across open country in minutes, our part of the world knows how fast a spark can turn into a serious loss. New Mexico has seen some of the largest wildfires in its history in recent years, and brush and grass fires are a regular threat across the Permian Basin.
The good news is that, unlike flood, wildfire damage is one of the disasters your insurance most likely already covers. This guide explains what wildfire insurance protects in New Mexico and West Texas, how to make sure your limits are high enough, and what to do if a fire damages your property.
Does homeowners insurance cover wildfire damage?
Yes. A standard homeowners insurance policy covers damage caused by fire, and that includes wildfire. In other words, wildfire insurance is usually built right into your home policy rather than sold separately. If a fire damages or destroys your home, your policy generally pays to repair or rebuild the house and helps with cleaning up smoke damage. That protection usually extends to other structures on your property too, like a detached garage, a barn, a shop, or a toolshed, and even to trees and shrubs on your land within your policy limits.
Your coverage does not stop at the building. A few other pieces of a typical policy come into play after a wildfire:
- Your belongings. Furniture, clothing, electronics, and other personal property are covered for fire and smoke damage. If you rent, a renters insurance policy protects your belongings the same way, even though the building is your landlord’s responsibility.
- A place to stay. If your home is left unlivable, additional living expenses coverage helps pay for a hotel, a rental, meals, and other extra costs while you are displaced.
- Your vehicle. Fire damage to a car is covered under the comprehensive part of your auto policy, not your home policy, so it is worth making sure you carry comprehensive coverage.
Make sure your wildfire insurance limits are enough
Having wildfire insurance is only half the picture. The amount your policy pays is set by your limits, and this is where a lot of homeowners come up short without realizing it. Building costs have climbed a great deal in the last few years, and a home insured to what it was worth several years ago may not have enough coverage to rebuild at today’s prices.
It is worth reviewing a few things before fire season, not during it. Make sure your dwelling limit reflects what it would actually cost to rebuild your home, and ask us about extended or guaranteed replacement cost, which adds a cushion if rebuilding costs run higher than expected. Check that your personal property and additional living expenses limits fit your household. And keep an up to date home inventory with photos or video of what you own, stored somewhere safe like the cloud or a safe deposit box, because it makes any future claim far easier. The Insurance Information Institute has a helpful guide to creating a home inventory that walks you through it.
Prepare your property before wildfire season
Wildfire insurance handles the financial side, but a little preparation can lower the odds of a loss in the first place, and insurers increasingly look at it. The idea is to create defensible space, a buffer that gives your home a fighting chance and gives firefighters room to work:
- Clear dry grass, brush, and dead vegetation for at least 30 feet around your home, and keep it cut back through the season.
- Trim tree branches away from the roof and chimney, and keep gutters and the roof clear of leaves and debris where embers can catch.
- Move firewood, propane tanks, and other flammable materials away from the house.
- Have an evacuation plan and a go bag ready, including copies of your insurance policy and important documents, so you can leave quickly if you need to.
If a wildfire damages your property: filing a claim
Your safety comes first, always. Once you are safe and cleared to assess the damage, these steps help you get the most from your wildfire insurance and make the recovery smoother:
- Call your agent or insurer as soon as you can. The sooner you start the claim, the sooner an adjuster can assess the damage and get you moving toward recovery.
- Document everything. Take photos and video of the damage before you clean up or repair anything, and use your home inventory to list what was lost. Your insurer will likely ask you to describe each damaged item, roughly when you bought it, and what it would cost to replace.
- Do not throw damaged items away too soon. When it is safe, hold on to damaged property until the adjuster has had a chance to see it, or document it thoroughly first.
- Keep your receipts. Save receipts for hotels, meals, and other extra costs while you are displaced, and for any temporary repairs you make to prevent further damage. Those are often reimbursable.
- Know the time limits. Policies set deadlines for filing a claim, so ask your insurer what applies to you and do not wait.
You can read more about wildfire coverage at the Insurance Information Institute.
Not sure your home is covered the right way?
The best time to review your wildfire insurance is before fire season, not after. We will make sure your coverage and limits actually fit your home and your budget.
Serving Artesia, Lovington, Hobbs, and Lubbock
This article is for general information only and is not insurance advice. Coverage, terms, and limits vary by policy and situation. Please contact Golden Insurance Agency to discuss the coverage that is right for you.
