Total loss after a house fire
A fire completely destroys a house, resulting in a covered total loss. All other conditions of this coverage are met, and the homeowner is paid the Coverage A limit.
Total Fire Loss Settlement
A total fire loss can be devastating, both emotionally and financially. Total Fire Loss Settlement coverage helps provide clarity and certainty by providing you with an up-front settlement amount when a covered total loss of your home is caused solely by fire.
Included with: Signature homeowners policies
Availability, limits and deductibles may vary by state and policy.
How does this coverage help?
After a total fire loss, the settlement process can feel overwhelming at a time when decisions need to be made quickly.
This coverage helps by:
- Paying the base Section I Coverage A (Dwelling) limit that is indicated on the declarations page of your policy up front when your home suffers a loss caused solely by fire and the damage is considered a total loss.
- If the estimated cost to rebuild exceeds the stated Coverage A (Dwelling) policy limit, payment will be issued for the actual cash value amount.
- Giving you the flexibility to either rebuild your home, build it differently or use the funds for something else entirely.
What is considered a total loss
A total loss means the dwelling is:
- Completely destroyed by fire, or
- Damaged by fire to such an extent that it can’t be repaired or restored to its pre-loss condition, or
- Damaged by fire and the cost to restore exceeds the cost to rebuild the home
What this coverage doesn’t do
- Does not increase policy limits beyond those shown on the declarations page.
- Does not apply to additional limits added by endorsement or otherwise.
- Does not apply if the home is insured by more than one insurance company.
- Does not apply if the home has unrepaired damage from a prior claim.
- Does not apply to home under construction or remodeling at the time of the fire loss.
Real-life scenarios
Severe damage where restoration costs more than rebuilding
A home is severely damaged by fire, and the cost to restore the dwelling exceeds the cost to rebuild it. Because the loss qualifies as a covered total loss caused solely by fire, the Coverage A limit listed on the policy is paid to the policyholder.
Is this coverage right for you?
Total Fire Loss Settlement can be a good fit if you want added clarity and certainty after a devastating fire loss.
It may be right for you if:
- You value knowing the minimum amount payable for your dwelling is the Coverage A limit shown on your policy
- You want flexibility to rebuild your home or use the settlement funds another way, without concerns about depreciation
- You prefer coverage that helps simplify decisions during an already difficult time
- You’re interested in Signature level homeowners coverage with enhanced features
Total Fire Loss Settlement is included with Signature homeowners policies, subject to availability and policy conditions. An Amica representative can help you review your coverage and confirm what applies to your home and location.
Ready to decide?
Explore YourPlan homeowners or condo coverage options, or talk to an Amica representative to review your quotes and confirm availability in your state.
FAQs
No. It does not increase your Coverage A limit. It establishes that the Coverage A limit shown on your declarations page is the minimum payable value for the dwelling settlement when a covered total loss is caused solely by fire.
It applies when there is a covered total loss of the dwelling that is caused solely by fire.
Yes. If the Actual Cash Value or Replacement Cost Value exceeds the stated value, the higher amount will be paid, up to the Coverage A limit.
Yes. For example, it does not apply if more than one company insures the same home, if the home has unrepaired damage from a prior claim, or if the home is under construction or remodeling at the time of loss.
No. It’s included with Signature homeowners policies only, and availability may vary by state.
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