A house fire is one of the most stressful events a family can face. Beyond the emotional toll, there is a complex insurance claims process to navigate while your home needs restoration. Understanding what your policy covers and what steps to take can make the difference between a smooth recovery and months of frustration.
Here is what Michigan homeowners need to know about fire damage insurance coverage and the restoration process.
What Homeowner's Insurance Covers After a Fire
Standard homeowner's insurance in Michigan covers three main categories after a fire:
1. Dwelling Coverage (Your Home's Structure)
This covers repair or rebuilding of your home's structure, including the roof, walls, floors, attached garage, deck, and porch. It also covers damage from smoke, which often extends well beyond the area that actually burned.
2. Personal Property Coverage (Your Belongings)
This covers furniture, electronics, clothing, appliances, and other personal belongings destroyed or damaged by the fire. Personal property coverage is typically limited to 50 to 70 percent of your dwelling coverage amount. If your home is insured for $400,000, your personal property limit is likely $200,000 to $280,000.
3. Additional Living Expenses (ALE)
If your home is uninhabitable during restoration, ALE covers temporary housing (hotel or rental), meals above your normal food costs, and other necessary expenses. This is subject to time limits and dollar caps specified in your policy.
What Is NOT Covered
- Fires caused by homeowner negligence (such as failure to repair known faulty wiring)
- Intentionally set fires (arson)
- Specific exclusions that vary by policy. Read your declarations page.
What Fire Damage Restoration Costs
| Damage Level | Typical Cost | Timeline |
|---|---|---|
| Small contained fire (one room, mostly smoke) | $3,000 - $14,000 | 2 to 4 weeks |
| Kitchen fire (grease/cooking) | $11,000 - $18,000 | 4 to 8 weeks |
| Multi-room fire damage | $20,000 - $50,000 | 2 to 6 months |
| Severe structural fire | $50,000 - $180,000+ | 6 to 18 months |
The average fire damage restoration project costs between $20,000 and $27,000. Per square foot, expect $4 to $7 for restoration work.
Steps to Take After a House Fire
First 24 Hours
- Do not re-enter your home until the fire department officially declares it safe
- Contact your insurance company to report the fire and start your claim. Have your policy number ready.
- Find temporary housing. Your insurance ALE coverage should pay for this. Keep all receipts.
- Secure the property. Board up broken windows, exposed roof sections, and damaged doors to prevent weather damage, vandalism, and animals. Your insurance company may cover emergency board-up costs.
First Week
- Document all damage with high-resolution photos and video before any cleanup begins. Photograph burned areas, structural damage, smoke damage on walls and ceilings, and every destroyed or damaged belonging.
- Create a detailed inventory of damaged items. For each item, note the description, approximate age, condition before the fire, and estimated replacement cost. Include receipts and old photos if you have them.
- Request the official fire department report. Under Michigan law (Act 207 of 1941), the fire chief must file a complete fire incident report. You need a copy for your insurance claim.
- Keep every receipt. Hotel stays, restaurant meals, replacement clothing, toiletries. Everything above your normal expenses is potentially covered by ALE.
First Two Weeks
- Be present for the insurance adjuster's inspection. Walk through every damaged area together. Point out damage that might not be immediately visible, such as smoke in HVAC ducts, water damage from fire hoses, and structural concerns.
- Do not authorize major repairs until you have consulted with your insurance company.
- Choose your own restoration contractor. You have the legal right in Michigan to hire whoever you want. The insurance company cannot require you to use their preferred vendor.
Michigan-Specific Requirements
- Michigan law requires insurance companies to conduct a timely, thorough, and unbiased investigation of your claim
- The insurer must provide notice of their intentions within 30 days of receiving your claim
- Fire department reports are filed through the National Fire Incident Reporting System (NFIRS). Request your copy from the responding fire department.
- If you suspect the fire was electrical or structural in origin, document this for your claim. It can affect coverage determinations.
Wear Protective Gear When Entering
When you get clearance to enter your home, wear: long sleeves, closed-toe boots, work gloves, a hard hat, safety glasses, and a certified respirator mask. Fire-damaged structures contain hazardous particles, soot, and potentially compromised structural elements.
SW Construction Handles Fire Damage Restoration
SW Construction provides full fire damage restoration for homeowners in South Lyon, Novi, Milford, Brighton, Northville, and across Oakland County. We handle structural repair, smoke damage remediation, and complete reconstruction. We work with your insurance company and provide the detailed documentation your adjuster needs.
Call (248) 804-5884 or contact us online for fire damage restoration.