What do insurance policies cover in case of fire?

This year we are experiencing a series of fires, both in Catalonia and in the rest of the State, which due to their virulence and speed are forcing thousands of people to evacuate their homes. Faced with fires that affect crops, houses, cars and businesses, we can ask ourselves who pays for the damages caused, and if aid can be requested to cope with the catastrophes.

In the face of a fire, who pays for the damages?

According to UNESPA, the Spanish Union of Insurance Entities, private insurance covers damages caused by fires affecting insured persons and property, such as a property or a vehicle. The entity that does not cover them is the Insurance Compensation Consortium: this public body only intervenes in extraordinary situations, such as earthquakes, volcanic eruptions or floods, as is the case of the DANA in the Valencian Community. Fires are not within its area of operation.

Home insurance

Insurers include coverage for fire and smoke damage, both for the building's structure (walls, doors, windows, etc.) and its contents (furniture, appliances, and goods inside the house). They also cover the expenses of extinguishing the fire and subsequent tasks, such as debris removal and replacement of destroyed public documents, like deeds, ID cards, etc.

And what if I have nowhere to live?

If the property has become uninhabitable, some insurers offer coverage for uninhabitability. In these cases, assistance is provided to find temporary accommodation depending on the conditions stipulated in the contract (amount, days...).

In the event of a business or car fire

Insurers for shops and businesses also cover damage to the property, furniture, machinery, and insured merchandise, and can also include loss of profits caused by the interruption of activity due to fire. However, a decision by authorities to confine or evacuate that causes an activity to cease would not be covered if there is no direct material damage, unless specific coverage is purchased for this purpose.

Regarding vehicles, those with comprehensive insurance have coverage for fires. In other cases, the policy must be consulted to ensure this protection is in place.

Agricultural and livestock operations

Regarding crops and livestock farms, those that are covered are covered by Agroseguro, an entity that manages agricultural insurance. The protection includes damage caused by fire and sometimes the losses derived from creating firebreaks necessary to contain the fire, as often happens with cereals.

How much money will they pay me?

Insurers will compensate for damages, but the amounts may not in any case exceed the value of what has been destroyed or the limit stipulated in the contract. That is to say, the so-called "insured capital" or "insured sum".

To find out which insurer we have contracted our policy with, we can contact our usual broker, the bank through which we contracted it, or review the direct debits to identify the company.