Although fire insurance is always included in every comprehensive house insurance policy, there are still many people who do not appreciate fire protection coverage. Most of the time, people tend to think that a house fire will never happen to them. Because of the wrong assumptions, it would be too easy for budget conscious homeowners to forgo comprehensive fire insurance. Worse, some people may even decide to do without basic home insurance that covers fire damage. You are courting a complete disaster if you do not have fire insurance. Here are some of the worst things that could happen if you do not have insurance for fire damage. Utter Financial Ruin In the Event of Complete Damage A house fire can cause extensive damage to your property. It can totally consume and destroy everything you own. If you do not have fire insurance, you may never recover from the disaster. The cost of rebuilding totally damaged house structures can be very prohibitive. Reconstructing your home after a fire could drain your savings. In worst cases, you may rack up huge debts just to rebuild your damaged home. If you do not have enough savings and you can not obtain a loan, you might end up homeless. You could avoid all these if you have fire insurance. Your policy could cover the cost of reconstruction. The benefits you get from the insurance company could help rebuild your home. You Will Never Recover Your Valuables Fire insurance can also provide coverage for house content. So your expensive appliances, electronics, work of art, jewelries, and other personal belongings are basically protected by insurance. If you lost all of them during a fire, the insurance company will indemnify you for your losses. You will be able to get the actual value of the damaged personal properties so that you can buy suitable replacements. If you do not have insurance for house content, then you will rebuild from scratch. You will be forced to spend for new appliances and electronics. You probably know already that these items are very expensive. You might not have the resources to buy them especially after a fire disaster. Again, you might be forced to borrow money or you will live a life without basic amenities. No One Will Pay for Temporary Living Expenses If your home has been damaged by fire, you will surely need temporary shelter. Because you can not just put up a shack on the street, you will be compelled to rent an apartment or a hotel room for your family. If you do not have fire insurance, you will be the one who will pay for incidental living expenses after the fire. What if you do not have extra savings? What if you can not borrow money to pay for the rent? Have you considered the seriousness of the situation? Without fire insurance, you might end up living on the streets. If you think that fire insurance is not important, then take a closer look at these worst case scenarios. These scenarios could happen to you if you do not have insurance that covers fire damage at your home (interesting to know is that the Danish term is Brand forsikring hjem). If you want to find out more about fire insurance, simply take a look at this great article.
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