Fire Coverage Newsletter | Colony West
July 16, 2024

Fire Coverage Newsletter

Catastrophe Insurance/By Colony West/0 comments

Roaring fires, fire prevention and fire technology have been a contentious debate for many years amongst Californian meteorologists and scientists. Southern California is unique in that we have two separate fire seasons. One occurs from October through April, usually driven by the Santa Ana winds, and the other being the warm and dry periods from June though September. According to Cal Fire and the US Forest Service, over 4,090 fires have been record in 2019, totaling an estimated 51,079 acres. Most notably was the end of 2018 where California saw the ‘Woolsey Fire’ which burned 96,949 acres and 1,643 structures simultaneously with the ‘Camp Fire’ which burned 153,336 acres and destroyed 18,804 structures. Whether you own a restaurant, retail store or a huge corporation, an incomplete fire insurance policy could make your whole business go up in smoke.

Although fires are oftentimes unpredictable, your insurance coverage doesn’t need to be. The previously mentioned ‘Camp Fire’ recorded $16.5 billion in total damage. Fire coverage means making sure you have the necessary property insurance that can protect you from a large variety of claims. Currently there are around 15 types of fire insurance policies:


  1. Add-On Covers – Covers additional disasters such as earthquakes
  1. Adjustable Policy – Ordinary policy with adjustable premiums
  1. Average Policy – Amount of compensation is determined by an ‘average clause’
  1. Comprehensive Policy – Offers full protection against fires, burglary, riot and more
  1. Consequential Loss Policy – Offers indemnity for loss of net profits and the costs of operations
  1. Declaration Policy – The maximum amount of insurance taken for goods and services at risk during the policy
  1. Escalation Policy – Describes the increase in insured for an additional premium
  1. Excess Policy – Like stocks, the coverage may fluctuate as the premium is calculated on the average monthly excess amount
  1. Floating Policy – Covers goods during a specific time for one premium and for the same owner
  1. Maximum Value and Discount Policy – Maximum amount and full premium during policy period
  1. Reinstatement Policy – Used to avoid indemnity
  1. Specific Policy – Where an insured amount is specified for a certain policy during a specific period
  1. Sprinkler Leakage Policies – Insures water damage from faulty sprinkler systems
  2. Valuable Policy – Policy where the market price of the property determines the claim amountg
  3. Valued Policy – Describes a policy where the property value is determined at the beginning of the policy


At Colony West, we go further to provide you with the necessary tools to protect your business, employees and assets. Through our extensive history, numerous services and a consultative approach, we help you stay protected and ensure your business during the wake of unpredictable fires and other natural disasters. No one believes that the unthinkable will happen to them until it is too late. Do not wait until something disastrous happens to your company to get yourself the coverage you need to rebuild your business. Contact us today to speak with a specialist who can help walk you through the first steps in protecting your livelihood.