Lessons from a Garage Fire: Reviewing Your Insurance Coverage

Lessons from a Garage Fire: Reviewing Your Insurance Coverage

Recently, a fire broke out in my condo complex just after midnight. Most of us only woke up because we heard a loud boom. Thankfully, no one was hurt, but three detached garages burned completely down, along with the cars inside. Five other vehicles parked nearby sustained body damage from the heat. My building had minor damage to the siding and windows facing the fire. It could have been so much worse.

While this fire was nothing compared to the devastating fires in the Los Angeles area, it was an eye-opening experience. I want to share some key lessons learned to help you review your own insurance coverage and emergency preparedness.

Key Takeaways & Insurance Considerations

1. Ensure Your Home Can Alert You in an Emergency

• Many neighbors close to the fire didn’t wake up when we knocked on their doors.
• Having a working doorbell is crucial. If you have a two-story home, make sure you can hear it from upstairs.
• Regularly check that your fire alarms are functioning properly and have one in each room, hallways and maybe even in the garage.
• Keep a fire extinguisher in an easily accessible location and ensure everyone in your household knows how to use it.

2. Never Use an Extension Cord for Appliances

• Fire investigators determined the fire started because a mini fridge was plugged into an extension cord and then into a 46-year-old garage outlet.
• Always plug appliances directly into a wall outlet—extension cords are not designed to handle high loads for extended periods.

3. Check Your Insurance Coverage for Garage Contents

• If you store valuable items in your garage, ensure you are including their value in the personal property section of your homeowner’s, condo, or renters’ policy.
• The HOA’s insurance typically won’t cover your personal belongings, even in accidental fires.

4. Know How Your Auto Insurance Covers Fire Damage

• If your car is damaged in a fire, repair or replacement will generally fall under your personal auto policy’s comprehensive coverage. This type of coverage kicks in when there is damage to your car (vs. collision insurance when you are in an accident)
• Most policies have a deductible so make sure this fits with how much you are afford.

5. Understand Who Pays for Garage Repairs

• The HOA will cover rebuilding the garage structure, but there is a deductible that the HOA has to pay.
• If you’re found responsible for the fire, that deductible will likely be passed on to you.
• Make sure you have Loss Assessment coverage in your condo policy to cover this type of claim.

6. Keep a Home Inventory for Easier Claims

• Take photos or videos of your belongings and store them in a secure digital location. This makes it easier to file claims and prove what you owned.
• Read this article to check out home inventory apps as an easy way to document your belongings. The app Encircle is a favorite among our staff.

7. Make an Emergency Evacuation Plan

• Decide what you would grab if you had 5 minutes, 15 minutes, or more time to evacuate.
• If you live on the second floor, ensure you have a safe exit plan.
• Exchange phone numbers with your neighbors for quick communication.

8. Have a Safety Plan for Pets

• If you have pets, make sure you have an evacuation plan that includes their needs.
• Know where your pet carrier is stored and keep it easily accessible.

Review Your Insurance Coverage

Given the recent fires, now is a great time to review your homeowners or renters’ insurance policy to ensure you have sufficient coverage.

• If you own a condo, check out my article: Five Things to Know When Buying Condo Insurance.
• If you own a home, you may want to read: Rising Inflation Could Mean Your Home Is Underinsured.
• If you rent, make sure your renters’ insurance covers:
  • Personal property replacement
  • Liability for accidental damages
  • Additional Living Expenses (aka ALE) for temporary hotel or rental stays if your home becomes uninhabitable

If you have any questions about your coverage, schedule a meeting with your financial advisor or insurance agent.  Now is the time to prepare —before an emergency happens.