Fire Estimate Summaries present basic data on the size and status of the fire problem in the United States as depicted through data collected in the U.S. Fire Administration’s (USFA’s) National Fire Incident Reporting System (NFIRS). Each Fire Estimate Summary addresses the size of the specific fire or fire-related issue and highlights important trends in the data.¹

Residential Building Estimates

Definition of Residential Building
A structure is a constructed item of which a building is one type. The term residential structure commonly refers to buildings where people live. To coincide with this concept, the definition of a residential structure fire includes only those fires confined to an enclosed building or fixed portable or mobile structure with a residential property use. Such fires are referred to as residential buildings to distinguish these buildings from other structures on residential properties that may include fences, sheds, and other uninhabitable structures. Residential buildings include, but are not limited to one- or two-family dwellings, multifamily dwellings, manufactured housing, boarding houses or residential hotels, commercial hotels, college dormitories, and sorority/fraternity houses.

Nonresidential Building Estimates

Definition of Nonresidential Building
Nonresidential buildings are a subset of nonresidential structures and refer to buildings on nonresidential properties. Buildings include enclosed structures, subway terminals, underground buildings, and fixed portable or mobile structures. The term nonresidential buildings refers to those nonresidential structures that are enclosed.Nonresidential buildings include assembly, eating and drinking establishments, educational facilities, stores, offices, basic industry, manufacturing, storage, detached garages, outside properties, and other nonpermanent residential buildings. The term nonresidential also includes institutional properties such as prisons, nursing homes, juvenile care facilities, and hospitals, though many people may reside there for short (or long) durations of time.

Nonresidential Building National Estimates (2003-2011)

Cause Definitions

Download

• Nonresidential Building National Estimates by Property Use (XLSX, 17 Kb)
  This spreadsheet contains overall nonresidential building estimates and estimates for fires, deaths, injuries, and dollar loss by property use.
• Nonresidential Building National Estimates by Property Use and Cause (XLSX, 36 Kb)
  This spreadsheet contains overall nonresidential building estimates for fires and dollar loss by property use and fire cause.

Related Content

• National Fire Protection Association Estimates
• USFA Residential and Nonresidential Fire Estimate Summaries, 2003-2010 (ZIP, 3.6 Mb – This archive contains files in PDF and XLSX formats.)
• USFA Residential and Nonresidential Fire Estimate Summaries, 2003-2009 (ZIP, 3.8 Mb – This archive contains files in PDF and XLSX formats.)
• USFA Residential and Nonresidential Fire Estimate Summaries, 2003-2008 (ZIP, 3.8 Mb – This archive contains files in PDF and XLSX formats.)

Links of Interest

• National Fire Protection Association
• World Fire Statistics Centre
• National Center for Health Statistics
• National Center for Injury Prevention and ControlSource: U.S. Fire Administration, “Residential and Nonresidential Building Fire Estimates”

Source: U.S. Fire Administration, “Residential and Nonresidential Building Fire Estimates” http://www.usfa.fema.gov/. Accessed June 16, 2014. href=”http://www.usfa.fema.gov/statistics/estimates/index.shtm”>http://www.usfa.fema.gov/statistics/estimates/index.shtm

© Copyright 2014. All rights reserved. This content is strictly for informational purposes and although experts have prepared it, the reader should not substitute this information for professional insurance advice. If you have any questions, please consult your insurance professional before acting on any information presented. Read more.

Business interruption insurance can be as vital to your survival as a business as fire insurance. Most people would never consider opening a business without buying insurance to cover damage due to fire and windstorms. But too many small business-owners fail to think about how they would manage if a fire or other disaster damaged their business premises so that they were temporarily unusable. Business interruption coverage is not sold separately. It is added to a property insurance policy or included in a package policy.

A business that has to close down completely while the premises are being repaired may lose out to competitors. A quick resumption of business after a disaster is essential.

1. Business interruption insurance compensates you for lost income if your company has to vacate the premises due to disaster-related damage that is covered under your property insurance policy, such as a fire. Business interruption insurance covers the revenue you would have earned, based on your financial records, had the disaster not occurred. The policy also covers operating expenses, like electricity, that continue even though business activities have come to a temporary halt.
2. Make sure the policy limits are sufficient to cover your company for more than a few days. After a major disaster, it can take more time than many people anticipate to get the business back on track. There is generally a 48-hour waiting period before business interruption coverage kicks in.
3. The price of the policy is related to the risk of a fire or other disaster damaging your premises. All other things being equal, the price would probably be higher for a restaurant than a real estate agency, for example, because of the greater risk of fire. Also, a real estate agency can more easily operate out of another location.

Extra Expense Insurance

Extra expense insurance reimburses your company for a reasonable sum of money that it spends, over and above normal operating expenses, to avoid having to shut down during the restoration period. Usually, extra expenses will be paid if they help to decrease business interruption costs. In some instances, extra expense insurance alone may provide sufficient coverage, without the purchase of business interruption insurance.

Source: Insurance Information Institute, “Do I need business interruption insurance?” http://www.iii.org website. Accessed June 16, 2014. http://www.iii.org/individuals/business/basics/interruption/

© Copyright 2014. All rights reserved. This content is strictly for informational purposes and although experts have prepared it, the reader should not substitute this information for professional insurance advice. If you have any questions, please consult your insurance professional before acting on any information presented. Read more.

Underst and the Insurance Implications of Leaving a Home Vacant or Renting It Out

A tough economic climate and slumping real estate market has resulted in more and more homes left vacant by their owners— and that could have serious insurance implications, according to the Insurance Information Institute (I.I.I.).

The U.S. Census Bureau reported late last month that 14.5 percent of all U.S. residences were vacant in the third quarter of 2009, reflecting a trend that is having a major impact on homeowners insurance.

“In today’s real estate market, it is not uncommon for homeowners to buy a new home without selling their old one first,” said Loretta Worters, vice president of the I.I.I. “With it taking much longer for a home to sell—particularly with tightening mortgage requirements for potential buyers—people are moving into their new home while their previous one remains vacant and that can cause significant problems for homeowners and insurers.

Insurers discontinue coverage on a home if it becomes unoccupied for over 30 days and no new residents have moved in. However, some insurers will grant a policyholder a vacancy permit, providing it is requested before the 30 days expire. This permit continues to provide coverage against some of the st andard homeowners perils, such as fire and wind, but does not protect the house against perils such as theft, glass breakage or water damage. The coverage provided by a vacancy permit varies from company to company, so policyholders should check with their agent or company representative.

“Many insurers will not insure a vacant home because there is a greater possibility that something could happen to it,” Worters noted. “That’s because such occurrences such as theft, v andalism, fire, or water damage are far more likely to happen in vacant houses than in occupied ones and the resulting damage is likely to be worse because no one is around to report it or stop it.”

Some insurers do offer vacant home insurance, the I.I.I. noted. The premium depends on a lot of factors, such as whether a home has a central alarm system, deadbolt locks and/or smoke detectors. Insurers also may assess whether a policyholder has winterized their home to protect plumbing fixtures from freezing temperatures, and how long the house will be vacant.

“Arranging for someone to come by regularly to check on the place is may result in a lower premium,” said Worters. “But generally speaking, you could pay 50 or 60 percent more for a policy on an unoccupied home as compared to a regular homeowners policy.”

RENTING VS. VACANCY

With slumping housing prices, more homeowners are renting out their homes rather than taking a loss on a sale or having them sit vacant. Homeowners who rent their property can protect themselves from financial loss by purchasing a l andlord policy. A l andlord insurance policy covers:

• The house. Much like a homeowners policy, it usually provides coverage against hazards such as fire, lightning, falling objects, smoke, explosion, wind and hail, water damage, among others.

• Other structures located on the property (garages, sheds, etc.). This coverage is often limited to 10 percent of the overall coverage on the house. For example, for a home with a $200,000 policy limit, no more than $20,000 would be paid to a policyholder to cover losses incurred to structures on the property but apart from the house itself.

• Property contents. While l andlord insurance policies do not insure a tenant’s belongings, they do typically cover any of the l andlord’s personal property that might be used by a tenant, such as tools, l andscaping equipment, appliances and furniture (either stored on site or provided by l andlords for use by their tenants). The best way to be sure of having enough personal property coverage is to take an accurate inventory of the contents on the premises.

• Lost rental income. This coverage reimburses a l andlord for any lost rental income due to building damage. Typically it provides up to 12 months of lost rental income.

• Legal fees and liability protection. L andlords may be liable if a tenant is injured on the property. Most l andlord insurance policies cover the l andlord’s legal fees should a tenant file a lawsuit. This type of policy would also pay out in the event of a judgment against a l andlord, protecting his or her personal belongings and assets if the tenant prevails in court. The policy may also cover medical payments in the event that a tenant is injured.

L andlord policies generally cost about 25 percent more than a st andard homeowners policy because l andlords need more protection than a typical homeowner. There are many factors used to determine the price of a l andlord policy, including:

• The square footage of the house and any additional structures, such as a detached garage.
• Building costs in the area.
• The features of the home, and construction materials used to build it.
• The crime rate in the neighborhood.
• The likelihood of damage from natural disasters, such as hurricanes and hail storms.
• The home’s proximity to a fire hydrant (or other source of water) and to a fire station; whether the community has a professional or volunteer fire service; and other factors that can affect the time it takes to put out a fire.
• The condition of the home’s plumbing, heating and electrical systems.

When planning to rent out a home, it is important to take some basic precautions:

• Require tenants to show proof of renters insurance for personal property, family liability, guest medical and additional living expenses. This not only provides them with protection, but will prevent tenants from trying to sue the l andlord if there is a fire or other disaster.

• Notify an insurance agent or company representative that the home is being rented out, and discuss the implications. Be aware that many insurance companies do not provide coverage for vehicles that are left at a l andlord’s home and remain accessible to tenants.

• Consider purchasing a personal umbrella policy. Umbrella insurance is designed to provide liability protection beyond the limits of homeowners, auto and watercraft personal insurance policies. With an umbrella policy, depending on the insurance company, the policyholder can add an additional $1 million to $5 million in liability protection. This protection is designed to “kick-in” when the underlying liability on other current policies has been exhausted.

Source: Insurance Information Institute, “A Vacant Home Still Needs Insurance – Don’t Be Caught Without Coverage” http://www.iii.org website. Accessed June 16, 2014. http://www.iii.org/press_releases/a-vacant-home-still-needs-insurance-dont-be-caught-without-coverage.html

© Copyright 2014. All rights reserved. This content is strictly for informational purposes and although experts have prepared it, the reader should not substitute this information for professional insurance advice. If you have any questions, please consult your insurance professional before acting on any information presented. Read more.