What Every Homeowner Should Learn From the Southern California Wildfires

Many people are under the assumption that nothing bad will ever happen to them. However, oftentimes this turns out to be just wishful thinking. The truth is nobody can be certain of what the future holds in store for them. That's why it's important to mitigate risks against potential perils whenever possible. As a homeowner, it's imperative that you not only have homeowners insurance, but the right amount of coverage that best suits your needs.

Disasters are Never Planned

Devastating wildfires ripped through Southern California in late October and burned into November 2007. The fires scorched over 800 square miles, charring 2,768 buildings, including over 2,100 homes. In addition to the loss of homes and businesses, another 430 some buildings were damaged by the flames.

In all, over 14,000 buildings were threatened by the fires, which caused an estimated $1.6 billion in damages.

Holiday Season and Home Fire Prevention

With Halloween behind us, many of us have begun decorating our homes for the upcoming holiday season. As we begin preheating our ovens to cook our Thanksgiving turkeys and decking the halls with boughs of holly, we're also unwittingly increasing the likelihood of becoming victim to a home fire. Cooking fires are more likely to happen on Thanksgiving than any other day of the year.

In 2005, cooking fires were involved in roughly 1,300 reported home structure fires on Thanksgiving - that's almost three times the daily average. And the threat of home fires doesn't end on Thanksgiving. Holiday lights (or other decorative lighting with live voltage) were involved in 16% of the home Christmas tree structure fires. (NFPA)

What's Covered in a Homeowners Insurance Policy

The typical homeowners policy has two primary sections: Section I covers your property, and Section II provides personal liability coverage to help protect you from lawsuits arising from incidents that occur on your property. Almost anyone who owns or leases property should have this type of insurance. Often, homeowners insurance is required by lenders as a requirement to obtain a mortgage.

Simply put, Section I covers damages that happen to your home (and property), while Section II covers injuries that happen to your guests while in your home or on your property (Insurance Information Institute).

Typical Disasters That are Covered with Homeowners Insurance

Typical hazards and perils covered in most homeowners insurance policies include fire, smoke, lightning, windstorm (excluded in certain areas of the country), hail, vandalism/theft, falling objects (such as a tree), water damage from bursting or frozen pipes, weight of snow or ice, a vehicle causing damage to the home, building collapse and structural damage from an electrical surge (not from electronics, such as your stereo, inside your home).

Nobody ever thinks that a fire will burn down their home or apartment. The Southern California wildfires serve as a tragic reminder that anybody can become a disaster victim. As you prepare for the holidays, consider the peace of mind a homeowners policy can provide.