Few disasters wreck a home like a fire. Even small fires can cause significant and costly damage to your home and destroy personal property. Nor is this a gradual process. Fire acts quickly, affecting the structural elements of your home. But it’s not just precious and irreplaceable objects to factor in – there’s a financial component too.

Estimating fire damage restoration costs is critical to getting an accurate and reasonable quote for repair. Your premiums and policy conditions will affect your fire damage insurance policy payout. Insurance companies are known for being hesitant to payout. That’s no different for fire damage insurance payouts.

Fire damage is not as uncommon as people believe. In the United States, a fire department responds to a fire every 24 seconds – or 3,600 fires a day. It can happen to you too. Protect yourself by learning the basics about fire damage cost and insurance.

Estimating fire damage restoration costs are highly dependent on the circumstances of the fire. What is the size of the property? How big was the fire? Did it affect the structural integrity of the property? How extensive is the cleanup required?

These are the questions insurance companies will ask when evaluating your claim for a fire damage insurance payout.

The average cost of fire restoration in the United States is between $3,000 to $40,000. However, most people pay around $11,900. This includes burnt material cleanup, sanitation of multiple rooms, and removal of smoke and soot.

At the lower end of the spectrum, expect to pay $2,500, rising to $50,000 for the most expensive properties and most extensive damage. When a fire completely destroys a property, your insurance company considers it a total loss fire claim.

The scale of your fire damage insurance payout involves multiple different factors? What factors determine these payouts? And why does the price go up or down?

The first factor is the size of your property. The more floor space means, the more there is for the fire to damage. You’ll pay on average $4 to $6.59 per square foot for restoration. Meaning a small 1,000 sq. ft. home may need a fire damage insurance payout of $4,000 to $6,500. In contrast, a large property covering 4,000 sq. ft. would see costs increase to $16,000 to $26,000.

The next factor is the type of damage. In order from least expensive to most expensive, these include:

• Smoke damage: $200 to $1,200
• Burnt materials: $300 to $1,600
• Soot damage: $400 to $1,700
• Chemical damage: $600 to $2,000
• Water damage: $3,000 to $6,000
• Structural damage: $15,000 to $25,000

When estimating fire damage restoration costs, most homes will involve a mix of these factors, to a greater or lesser extent. It will also be impacted by where in the property the fire occurred, with dining rooms typically cheaper than attic repairs – where structural damage is more common.

Finally, fires can also be ranked by class. This is commonly done when estimating fire damage restoration costs. Class A fires are commonplace, involving combustibles like wood and paper. At the furthest extreme, Class K fires occur due to cooking oil, grease, and other fats. They’re much harder to put out, substantially increasing the risk of damage.

The most common insurance policy for home damage is homeowners insurance. It is a blanket policy covering loss and/or damage to the property and possessions, both interior and exterior. A homeowners policy is typically sufficient in most cases of fire damage. It will cover damage from the fire up to the limits of your policy and minus any deductible.

The exceptions involve any fire intentionally caused by you or someone named on the policy. Named perils are another potential exception. The list of named perils is extensive but includes fire and lightning, vandalism, volcanic eruption, damage by short-circuit, and more. Always review named perils and the extent of coverage before signing an insurance document.

You can also take out a specific fire insurance policy, which provides additional coverage against smoke or water damage due to fire. They can even help pay for damage to nearby structures too.

When selecting a home insurance policy, fire damage should be one of your top priorities. Good insurance deals will explicitly state what is covered under the policy, making clear the types of damage and causes of damage that are included. Vague language or missing damage types can later lead to difficult fire damage insurance payout negotiations. The last thing anyone needs when dealing with fire damage.

Good insurance policies also have high limits. Determining your limits means estimating the potential fire restoration costs before they occur. How much is your property worth? How far are you from the nearest fire station? Is your home more flammable than others? The answers to these questions will affect the policy limit that’s right for you.

Bad deals, however, involve exceedingly high premiums and little or no coverage. In such cases, you’re unlikely to see a substantial payout. You’ll also want to ensure things like water damage and smoke damage from a fire are covered. And what stipulations the policy states relating to upkeep and repair. For example, if a fire occurs due to poor maintenance, the homeowner can be liable.

Also, properties located in wildfire hotspots should also clarify the policy’s coverage. Damage from wildfires is typically covered, however.

If you find yourself with a bad insurance deal or the insurance company refuses to pay out, speak to an insurance commissioner to provide further clarification. There are also several consumer advocacy groups available in most regions.