As many as 90 percent of wildland fires in the United States are caused by humans, according to the U.S. Department of Interior. Some human-caused fires result from campfires left unattended, the burning of debris, negligently discarded cigarettes and intentional acts of arson. The remaining 10 percent are started by lightning or lava.

Over the 20-year period, 1993 to 2012, fires, including wildfires, accounted for 1.7 percent of insured catastrophes losses, totaling about $6.5 billion, according to the Property Claims Services (PCS) unit of ISO. The term “catastrophe” in the property insurance industry denotes a natural or man-made disaster that is unusually severe. An event is designated a catastrophe by the industry when claims are expected to reach a certain dollar threshold, currently set at $25 million, and more than a certain number of policyholders and insurance companies are affected.

Damage caused by fire and smoke are covered under standard homeowners, renters and business owners insurance policies and under the comprehensive portion of an auto insurance policy. Water or other damage caused by fire fighters to extinguish the fire is also covered under these policies. In California the California FAIR Plan covers residential and commercial properties located in brush and wildfire areas. Properties in those areas are subject to higher rates due to increased risk of fire.

RECENT DEVELOPMENTS

• Recent Research: A 2015 study by CoreLogic identifies almost 900,000 residential properties across 13 states in the western U.S. currently at high or very high risk of wildfire damage. They represent a combined total property value estimated at more than $237 billion. Of the total properties identified, 192,000 homes fall into the very high risk category, with total residential exposure valued at more than $49 billion.
• California, Colorado and Texas are the states with the largest number of properties categorized as very high risk, with a combined property value exceeding 36 billion. The exposure jumps to $188 billion when properties at high and very high risk are included.
• The cost of fighting wildfires reached $3.5 billion per year from 2002 to 2012 according to a report by Headwaters Economics, a nonprofit Research group.
• Harvard School of Engineering and Applied Sciences researchers have concluded that by 2050 the number of wildfires in the West could rise by 50 percent, and across the U.S. the number would double.
• 2015 Wildfire Season: Between January 1 and June 1, 2015 there were 21,648 wildfires in the U.S., which burned 397,136 acres, according to the National Interagency Fire Center.
• 2014 Wildfire Season: Over the past 20 years the 2014 wildfire season ranks second only to 2013 for the lowest number of fires and acres burned.
• In 2014 there were 63,312 wildfires which burned over about 3.6 million acres.
• The Happy Camp Complex fire in California burned over 134,056 acres.
• The Carlton Complex fire in Washington state burned over 256,108 acres and was the largest fire in the state to date.

BACKGROUND

Researchers are discovering that embers blown by the wind during wildfires cause most of the fires that burn homes. Also, homes that are less than 15 feet apart are more likely to burn in clusters. In such cases, fire is often spread by combustible fences and decks connected to houses, a study by the Institute for Business & Home Safety (IBHS) found.

The risk of wildfires is likely to continue to grow as temperatures rise, lengthening the fire season, and more people move into steep forested areas once largely uninhabited. Thirty-eight states have wildfire risks, according to IBHS, and the risk of wildfires keeps growing as more homes are built in wildland areas, some five million in California alone. Among the preventive features recommended in the IBHS study were noncombustible siding, decking and roofing materials; covered vents; and fences not connected directly to the house. In addition, combustible structures in the yard such as playground equipment should be at least 30 feet away from the house and vegetation 100 feet away.

Courtesy of iii.org.

Courtesy of iii.org

You probably make a checklist for performing home repairs, a shopping list before hitting the grocery store, or perhaps a to-do list for work assignments —but do you have a checklist for reviewing your insurance coverage? The start of hurricane season is right around the corner (June 1 – November 30). So now’s the time to check your homeowners or renters insurance—and this handy list will make it easy to be sure you’re well-prepared in case a storm comes your way.

HOMEOWNERS COVERAGE

 Check your policy limit; is it enough to rebuild your home?

Make sure to have enough coverage to completely rebuild your home in the event it is severely damaged or destroyed. And, remember, the real estate value of a house is not the same as the cost to rebuild.

Consider these homeowners coverages to help protect against the costs of rebuilding after a hurricane:

• Extended Replacement Cost Policy – pays an additional 20 percent or more above the policy limits.
• Guaranteed Replacement Cost Policy – pays the full amount to rebuild your home whatever the ultimate cost.
• Inflation Guard – automatically adjusts the coverage limits to reflect changes in construction costs.
• Ordinance or Law Coverage – pays a specified amount for rebuilding to new building codes, should your community adopt stricter codes.

Do you know everything you own and how much it’s worth?

Imagine having to re-purchase all of your furniture, clothing and other personal possessions. Now think about what that would cost. Most insurers provide coverage for personal possessions—approximately 50 to 70 percent of the amount of insurance you have on the structure of your home. Is this enough? The best way to determine what you actually need is to conduct a home inventory—a detailed list of your belongings and their estimated value. The I.I.I.’s free Know Your Stuff – Home Inventory tool can help.

Check what type of insurance you have for your belongings:

• Replacement Cost Coverage – pays what it would cost to replace your personal possessions at their current value.
• Actual Cash Value Coverage – pays to replace your personal possessions only at their depreciated value.

Does your policy provide enough Additional Living Expenses coverage?

Additional Living Expenses (ALE) coverage kicks in if your home is rendered uninhabitable as the result of a hurricane or other insured disaster. ALE covers the extra costs involved in living away from home—hotel bills, restaurant meals and other expenses, over and above your customary living expenses—incurred while your home is being repaired or rebuilt. If you rent out part of your home, this coverage also reimburses you for lost rental income.

Check that the coverage is adequate for your needs:

• ALE coverage is generally equal to 20 percent of the amount of insurance coverage that you have on the structure of your house; however, most insurers offer the option of higher coverage limits.
• Many policies provide ALE reimbursements only for a specific amount of time; make sure you’re comfortable with the time limits in your policy.

What is the percentage of the hurricane/windstorm deductible stated in your policy?

Insurers in every coastal state from Maine to Texas include separate deductibles for hurricanes and/or windstorms in their homeowners policies. Unlike the standard “dollar deductible” on an auto or home policy, a hurricane or windstorm deductible is usually expressed as a percentage. It is clearly stated on the Declarations (front) page of your homeowners policy.

Hurricane and windstorm deductibles generally range from 1 to 5 percent of the insured value of the structure of your home. A hurricane deductible is applied only to hurricanes whereas a windstorm deductible applies to any type of wind. If your policy has a hurricane deductible, it will clearly state the specific “trigger” that would cause the deductible to go into effect.

Keep in mind:

• If you live in an area at high risk for hurricanes, your hurricane deductible may be a higher percentage.
• Depending on your insurer and the state where you live, you may have the option of paying more money in premiums in exchange for a lower deductible.
• A deductible is basically the amount subtracted from an insurance payout. If you have a high hurricane or windstorm deductible consider putting aside the additional money you may need to rebuild your home.

What disasters does your insurance policy cover?

Standard homeowners insurance policies provide coverage for hurricanes, wind, theft, fire, explosion, lightning strikes and a host of other disasters. However, all policies also list exclusions—such as for flood or earthquake—which are NOT covered by the policy. Get to know the exclusions in your policy and either talk to your Insurance Professional about purchasing separate coverage, or be prepared to pay the cost of those damages out-of-pocket.

Important additional coverages to consider in hurricane-prone areas:

• Sewer Back-Up Coverage – Can be purchased either as a separate policy or as an endorsement to an existing homeowners policy. Sewer backups and damage from runoff water caused by major downpours are not covered under standard homeowners nor by flood insurance.
• Flood Insurance – Separate flood insurance is available from FEMA’s National Flood Insurance Program (NFIP) and from some private insurance companies.

But, wait, what about your flood insurance policy?

People tend to underestimate the risk of flooding, but 90 percent of all natural disasters include some form of flooding—especially hurricanes! If you live in a flood zone, or a hurricane-prone area, a separate flood insurance policy is a must. But it’s equally important to understand what it actually covers.

An NFIP flood insurance policy provides coverage for up to $250,000 in replacement cost coverage on the structure of the home and $100,000 in actual cash value coverage for personal possessions. Coverage for basements is limited, so make sure you understand what is considered a basement, as well as what is and is not covered in that area of the house. The NFIP policy also does not include coverage for ALE.

Additional tips about flood insurance:

• There is a 30-day waiting period for a flood insurance policy to go into effect so don’t wait until a storm is imminent to apply for coverage.
• The NFIP offers a range of deductibles; the deductible you choose will affect the cost of the policy and the amount of money you would receive if you file a claim.
• If you require a higher amount of coverage than is offered by the NFIP, consider getting excess flood insurance which is available from private insurance companies.

RENTERS INSURANCE

If you rent, rather than own, your home, have you bought renters insurance?

While your landlord may provide insurance coverage for the structure of your home, as a renter you are responsible for your own belongings. Renters insurance covers the loss or destruction of your possessions if they are damaged by a hurricane or other disaster listed in the policy. A standard renters insurance policy also includes ALE coverage if you are unable to live in your house or apartment due to damage caused by a hurricane.

Flood insurance is also available for renters. However, as for homeowners, the NFIP flood insurance policies for renters do not include ALE coverage.

Don’t wait to review and update your insurance until after you have a loss—there are few things worse than finding out you did not have the right kind of coverage when you are already filing a claim. So before hurricane season kicks off, make sure you’ve reviewed home or renters insurance policy with this Hurricane Season Insurance Checklist. Call your Insurance Professional if you have any questions. They can provide guidance on how to get the insurance protection that’s best for your needs and budget.

For information on how to make your home more disaster resistant, go to the Insurance Institute for Business & Home Safety (IBHS). For information on evacuation, go to the Federal Alliance for Safe Homes (FLASH).

. Courtesy of iii.org

Every year, millions of Americans safely enjoy outdoor barbecues, but accidents do happen. According to the U.S. Fire Administration, about 5,700 grill fires take place on residential property every year, causing an annual average of $37 million in damage, 100 injuries and 10 deaths. The majority of grill fires are caused by malfunctioning gas grills. In addition, thousands of people visit emergency rooms every year because they have burned themselves while barbecuing.

In the rare instance of a grill fire spreading to your property, your homeowners insurance would provide financial protection as fire is a covered peril. A homeowners policy covers the following:

• Damage to the house itself.
• Damage to personal possessions such as lawn furniture.
• Damage to insured structures on your property, such as a shed or gazebo.
• Injuries to a guest, under the liability portion of the policy.

Keep in mind you’ll have to pay your deductible before your insurance kicks in, so if damage is minimal and your deductible is high, it may not make sense to file an insurance claim.

However, the best way to enjoy a summer of outdoor barbecues is to take steps to prevent accidents, including maintaining your grill and using it safely.

Grill Maintenance and Storage

Gas grills are generally safe if they are properly maintained and checked for leaks. In some instances, grills are unsafe due to faulty design or construction. (You can search the website of the Consumer Product Safety Commission to see if there has been a recall on your grill.) When setting up at the start of each grilling season, the following tips can help ensure everybody’s safety:

• Check grill hoses for cracks, holes and brittleness. Look for blockages as well, especially in the Venturi tube that runs to the burners. Clear blockages—caused by food drippings, spiders or insects—with a wire or pipe cleaner.
• Run a soap solution (one part liquid soap, one part water) along hoses and at connections, then open the valve at your tank and check to make sure that gas isn’t escaping, which will be indicated by bubbles at the leaking points.
• Adjust hoses as needed away from hot areas or where grease might drip on them.
• Store propane tanks outside, away from your house. Always check to make sure valves are firmly turned off.

Safe Barbecuing Practices

When barbecuing, use common sense and follow these guidelines:

• Operate your barbecue on a level surface, away from your house, garage and landscaping. Don’t move the grill once it is lit.
• Keep children and pets away from ther grill.
• Protect yourself—or whoever is doing the grilling—with a heavy apron and oven mitts that reach high on the forearm.
• For charcoal grills, use only lighter fluid designed for grilling. Never use gasoline or other flammable liquids, and never add more lighter fluid once the fire has started.
• Never grill indoors or in enclosed areas. Charcoal grills produce carbon monoxide (CO) fumes, which can be fatal in unventilated areas.
• Keep a fire extinguisher nearby.
• When you’re done with your cooking, remember that the grill will remain hot for a while. Don’t cover or store your grill until it has cooled, and soak coals with water before throwing them away.

In Case of an Accident

If a grill accident—or any kind of accident—does occur, injuries should be addressed immediately. Run cool water over minor burns, but do not cover injured areas with bandages, butter or salve. In the case of more serious burns, victims should visit the emergency room or an urgent care facility. If needed or when in doubt, call 911.

Once you have dealt with any injuries, assess your property damage and, if the situation calls for it, contact your insurance professional to discuss filing a claim. Courtesy of iii.org