Everything You Need to Know About Rebuilding After Fire Damage and What Insurance Will Pay For
When a fire damages your home, the initial shock is overwhelming. Once the flames are out and the firefighters leave, the reality begins to set in—there’s a long road ahead. One of the first questions most homeowners ask is:
“Will my insurance cover the rebuild?”
The short answer is: it depends. While most standard homeowners insurance policies do cover fire damage, the specifics of what’s covered—and how much—is often buried in policy details. In this guide, we’ll break down what insurance typically pays for, what it might not, and how to make sure your home gets rebuilt the right way.
What Homeowners Insurance Typically Covers After a Fire
In most cases, standard homeowners insurance policies (often referred to as HO-3 or HO-5 policies) include several types of coverage that apply in the event of a fire:
- Dwelling Coverage: Pays to repair or rebuild the structure of your home
- Personal Property Coverage: Pays to replace damaged belongings like furniture, clothing, and electronics
- Additional Living Expenses (ALE): Covers the cost of temporary housing, meals, and travel while your home is uninhabitable
- Debris Removal: Covers the cost of clearing out burned materials before rebuilding can begin
Most policies will cover fire damage whether it’s caused by electrical faults, cooking accidents, or wildfires—as long as the fire was accidental and not due to negligence or intentional damage.
Will Insurance Pay for the Entire Rebuild?
In many cases, yes, but it’s not always that simple. Insurance companies typically pay to rebuild your home back to its pre-loss condition—not necessarily to upgrade or fully customize it.
Here are some key factors that affect whether your rebuild is fully covered:
1. Your Policy Type (ACV vs. RCV)
- ACV (Actual Cash Value): You’ll receive the depreciated value of the materials that were damaged.
Example: If your roof was 15 years old, the payout reflects its remaining life—not the full cost to replace it. - RCV (Replacement Cost Value): Covers the full cost to rebuild using similar materials—without factoring in depreciation.
This is the preferred type of coverage for most homeowners rebuilding after a fire.
Tip: Some policies initially pay ACV and reimburse the remaining cost after repairs are completed. It’s important to save receipts and work with a contractor who provides detailed documentation.
2. Coverage Limits
Even with RCV, your payout is limited to the maximum amounts listed in your policy:
- Dwelling limit – Total allowed for rebuilding the structure
- Personal property limit – What you can claim for belongings
- ALE limit – Maximum reimbursement for temporary living expenses
If rebuilding costs exceed your policy limits, the remaining cost becomes your responsibility—unless you have an extended or guaranteed replacement endorsement.
3. Building Code Upgrades (Ordinance or Law Coverage)
If local codes have changed since your home was built, you may be required to upgrade parts of your home (electrical, insulation, structural design) during the rebuild. Some policies include coverage for this, known as “ordinance or law” coverage—but not all do.
Example: If you’re required to install a fire-rated door or upgrade wiring, your insurer may only cover it if this endorsement is included in your policy.
What May Not Be Covered in a Fire Rebuild
It’s important to understand that insurance is designed to restore—not necessarily improve—your home. Here are common exclusions or partial coverages:
- Upgrades you request that go beyond your home’s original construction (e.g., marble countertops instead of laminate)
- Uncovered structures like sheds or detached garages (unless separately listed in your policy)
- Delays caused by custom requests, changes, or permitting
- Pre-existing damage that existed before the fire
Why Documentation Matters More Than You Think
To ensure your rebuild is covered accurately, detailed documentation is critical:
- Take photos of the damage as soon as it’s safe to do so
- Gather receipts for any improvements made before the fire
- Request a scope of work from your restoration contractor that includes line-by-line estimates
- Track all expenses related to temporary living, meals, and personal purchases
At Standard Restoration, we work closely with homeowners and adjusters to make sure nothing is missed, overlooked, or underfunded. We provide insurance-ready documentation, scope revisions when needed, and support through the entire claims process.
How Standard Restoration Supports the Rebuild Process
Rebuilding after a fire isn’t just about replacing walls and roofs—it’s about restoring peace of mind. Here’s how our team ensures you’re taken care of:
- Thorough damage assessments with supporting documentation
- Accurate rebuild estimates that align with insurance requirements
- Communication with your adjuster to ensure the scope matches your needs
- Help filing supplements when hidden damage is uncovered
- End-to-end service, from demolition to final walkthrough
FAQs: Fire Damage and Insurance Coverage
Q: Will insurance pay to rebuild my entire home if it’s a total loss?
A: If your policy includes full dwelling coverage (and potentially extended or guaranteed replacement cost), it may. Be sure to verify your policy’s limit.
Q: What if I want to upgrade during the rebuild?
A: You can request upgrades, but costs above what the insurance would have covered may need to be paid out-of-pocket.
Q: Can I choose my own contractor?
A: Yes. You are not required to use your insurance company’s preferred vendor. Choosing an independent restoration company like Standard Restoration ensures your rebuild is done right—with your best interest in mind.
You Deserve to Be Made Whole Again
A house fire is one of the most difficult experiences a homeowner can face—but with the right support and clear information, recovery is possible. Understanding your insurance coverage, your policy’s limits, and the rebuild process puts you in control.
At Standard Restoration, we’re here to help you every step of the way. From damage assessment to full reconstruction, we work with your insurer—but we work for you. Our job isn’t done until your home is safe, sound, and fully restored.
Contact Standard Restoration Today
If you’ve experienced fire damage and are unsure what your insurance will cover, reach out to our team for a free consultation. We’ll assess your damage, review your policy with you, and create a plan to get your home rebuilt—safely, completely, and professionally.
