Understanding Fire Extinguishing Costs and How Insurers May Approach Them (Personal Policies)

Wildfires, accidental fires, and runaway flames can create significant financial pressure – not only due to damage to your property but also because of the costs involved in extinguishing or controlling the fire. Many policies offer extensions for fire-fighting and extinguishing expenses, but the scope of cover varies depending on the product you select, the assets insured, and the specific wording of your policy schedule. Below is an overview of how insurers typically treat these costs and what you should be aware of when reviewing your cover.

1. Fire-Extinguishing Costs on Your Own Property

Depending on the policy you hold, fire-fighting or extinguishing costs may extend to:

Buildings and Infrastructure

Most policies will cover fire-extinguishing costs for buildings and structures specifically listed on your policy schedule. This may include your home, outbuildings, and other defined structures.

Important:
Crops are generally not included in Personal Lines products unless specifically insured under a different product type.

When Emergency Services Attend Your Property

Many policies offer an automatic extension that covers the fees charged by emergency services—such as the fire brigade – when they respond to prevent or reduce loss to your insured property.

Key points often include:

• Cover applies to both Buildings and Contents, if these sections are active.
• Costs paid to emergency responders are in addition to the sum insured, not deducted from it.
• You usually need to show that the property was in actual danger and that you were legally liable for these costs.

If a fire was minor or did not threaten the insured property, the insurer may dispute the claim on the basis of lack of danger.

2. Fire Originating on Your Property Affecting a Neighbour

If a fire starts on your property and fire-fighting services are used to protect a neighbour’s assets:

• These costs are not covered under the standard Buildings or Contents extensions.
• The neighbour may claim against you under legal liability if you are proven responsible for the fire.
• In such cases, your liability section (if included in your policy) may respond, subject to terms and conditions.

3. Fire Originating Elsewhere That Threatens Your Property

If a fire begins external to your property (for example, on neighbouring land) and you apply fire-fighting measures on that land to protect your own assets:

• These costs may be covered only if the fire posed an imminent danger to the insured buildings and contents defined on your policy schedule.
• Cover requires that you were legally liable for any external costs incurred.

If the fire is not deemed a direct threat to your insured property, these costs are typically not reimbursed.

4. Aerial Fire-Fighting Services (Helicopters & Bombers)

Aerial resources, while highly effective, are expensive – and insurers treat these costs carefully.

Depending on your product:

• Cover usually applies only when your insured property is under threat, and you are legally liable for the expenses.
• Property owners in affected areas may be billed collectively, with costs apportioned between them.
• Insurers assess each case on its merits to determine what constitutes “reasonable costs.”
• Some policies include a specific limit-for example, up to 25% of the sum insured for this extension.

5. Crops, Land & Other Non-Standard Assets

Under most Personal Lines products:

• Crops, grazing fields, natural vegetation, or commercial farming assets are not automatically covered.
• Only assets specifically noted-such as buildings or defined structures-will trigger fire extinguishing cover.
• Agricultural or commercial products may require a different policy category entirely.

Key Takeaways

• Fire-fighting cost cover is not universal– it depends heavily on the product type, the sections selected, and the assets named on your policy schedule.
• Cover is more likely to respond when:
  • The fire posed an imminent danger to insured property.
  • You were legally liable for the costs incurred.
  • The costs relate to buildings and structures specifically insured.
• Liability cover, if included, may assist where a fire from your property causes damage or risk beyond your boundary.

* This article is provided for informational purposes only and should not be construed as legal or financial advice.