Fireplaces add both physical warmth and ambiance, able to completely transform the atmosphere of a home.
But can they also change your homeowner’s insurance?
Expect to pay more for your annual premium
Any fire feature within a home or yard is seen as a risk for insurance companies. Statistically, these features increase the chance of the homeowner making a claim, both for damage to the home and injuries to others. You can expect that your annual premium will cost more if your home has fire features or you add one as part of a renovation.
In some cases, insurance can be denied
Not all fireplaces or wood-burning stoves are created equally. Some are manufactured in ways that produce greater risk, while older appliances may have deteriorated to a dangerous degree. Insurance companies are aware of this and may require that fire features pass inspection before they will cover the home. Even once initial coverage is okayed, some companies may require annual inspections in order to renew coverage.
You may be required to take specific safety measures
Another common request from insurance companies is that the homeowner takes specific safety measures to combat the most common risks of fireplaces and wood-burning stoves. These can include mesh screens that keep embers at bay, chimney caps to keep animals out of the system and a carbon monoxide detector to prevent poisoning. You also will need to complete regular maintenance; companies can deny claims if there is evidence that the fire feature was not well maintained.
If you are set on having a fireplace in your home, speak with your insurance provider prior to installation to determine if and how it will impact your coverage. Never hide the addition of a fire feature from your insurance company as it could give them grounds to deny future claims. If you find that your current provider will charge too much for the addition, speak with an insurance broker to find a policy more suited to your needs.
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