Is Your Home and Property Adequately Insured for Fire?

When disaster strikes, such as a fire destroying your property, understanding your insurance coverage can make all the difference. Too often, people realize too late that their insurance doesn’t provide the protection they thought they had. Whether it’s a structural fire, storm damage, or a loss involving outbuildings like barns or sheds, being proactive with your insurance can save you time, money, and stress. Below, we’ll outline key insights to help you ensure your property is adequately covered.

Three Common Types of Property Insurance Policies

1. Homeowner’s Policy

   • Covers your primary residence and attached structures (e.g., garages).

   • Includes personal belongings, subject to policy terms and exclusions.

   • Provides liability coverage if someone is injured on your property due to your fault.

   • Typically protects against common risks like fire, wind, and hail damage, though flood coverage is usually separate.

     
     

2. Farm Policy

   • Comprehensive coverage tailored to farming operations, including barns, equipment, and liability related to farm activities.

   • Examples of covered liability: injuries on your land, livestock causing accidents, or claims of tainted products (e.g., milk).

   • Includes coverage for specialized farm assets like silos, tractors, and skid steers.

     
     

3. Country Estate/Acreage Policy

   • A hybrid policy for rural property owners who aren’t full-scale farmers.

   • Provides broader protection than a homeowner’s policy, such as for ATVs, tractors, and outbuildings, but less than a farm policy.

     
     

Outbuildings and Personal Property Coverage

A common oversight involves outbuildings like detached garages, sheds, or pole barns. Many assume their homeowner’s policy extends full coverage to these structures and their contents, but that’s often not the case. Items stored in outbuildings—tractors, boats, ATVs, tools—may require specific documentation and additional coverage.

Proactive Steps to Take:

• Inventory Your Property: Use your phone to take photos and videos of valuable items stored in outbuildings.

• Review Your Policy: Understand whether these items are covered and whether you need to list them separately.

• Work with Your Insurance Agent: Ensure your agent understands your needs and confirms in writing (e.g. email, electronic message, or letter) that your assets are adequately insured.

  
  

Key Questions to Ask Your Insurance Agent

1. What coverage do I have for outbuildings and their contents?

2. Are my farm equipment, ATVs, or boats covered under my current policy?

3. Do I need to submit an inventory or photos of my belongings for coverage?

4. If my house is uninhabitable due to a fire, what expenses will my policy cover (e.g., hotel stays, food)?

   
   

What to Do in Case of a Loss

If a fire or other disaster occurs:

• Document Everything: Take photos of the damage and keep receipts for any expenses, such as temporary lodging or repairs.

• File a Claim Promptly: Many states, including Iowa, Minnesota, and Wisconsin, have short deadlines (often one year) for property loss claims.

• Communicate with Your Insurer: Keep detailed records of all correspondence, preferably in writing.

  
  

Legal Recourse if Insurance Falls Short

Unfortunately, even with careful planning, disputes with insurance companies or agents can arise. Common legal claims include:

• Negligence by Insurance Agents: Failure to secure requested coverage or mistakes in policy applications.

• Breach of Contract: When insurers fail to pay what the policy promises.

• Policy Reformation: Correcting a policy to reflect the coverage you should have received.

  
  

Legal claims involving fire losses often have shorter statutes of limitations than other types of claims, so acting quickly is essential.

Be Proactive, Not Reactive

Taking the time to understand your insurance coverage before a disaster can save you significant stress and financial hardship. Review your policy, work with a knowledgeable agent, and document your assets thoroughly. By being proactive, you can protect yourself, your property, and your peace of mind.

If you’ve suffered a loss and need legal assistance, don’t hesitate to contact an experienced attorney who can help navigate the complexities of insurance disputes.