Chimneys, wood stoves and fireplace fires

A standard homeowners policy covers fire and smoke damage that starts in a chimney, fireplace or wood stove, including the damage when the fire spreads to framing, the attic or the rest of the house. It does not pay to clean, repair or replace a chimney that has deteriorated through age or neglect. And because wood heat raises the fire risk, insurers often want to know about a stove or insert before you install it, and some restrict or surcharge it.

The wording below comes from the ISO HO-3 form (HO 00 03 05 11). Your insurer's form and its underwriting rules control, so read your declarations page and ask your agent what applies to solid-fuel heat.

What the policy pays after a fire

Fire is a covered cause of loss on every part of the HO-3. The dwelling and other structures are insured on an open-perils basis, and "fire or lightning" is the first named peril for your belongings. After a chimney or fireplace fire, the usual claim has several parts:

• Fire damage to the chimney, the chase, wall framing, roof, attic and finishes, including damage from the firefighting effort.
• Smoke and soot damage. The Coverage C smoke peril is limited to "sudden and accidental" smoke damage, with puffback of smoke or soot from a boiler, furnace or related equipment given as an example. Smoke from agricultural smudging or industrial operations is excluded. A fireplace that has stained the ceiling a little at a time for years is not a sudden loss.
• Loss of use. If the house is not fit to live in during repairs, Coverage D pays additional living expenses. See making an additional living expenses claim.
• Fire department charges. The HO-3 pays up to $500 for fire department service charges you are liable for by contract, but not if the property is inside the limits of the city or district that responds. Rural properties that subscribe to a fire service are the typical case.
• Code upgrades. If repairs trigger a requirement to rebuild a chimney liner or clearances to current code, the Ordinance or Law additional coverage allows up to 10% of the Coverage A limit. See ordinance or law coverage: paying to rebuild to code.

One doctrine is worth knowing. Property insurance law has long separated a "friendly" fire, which burns where it is meant to, from a "hostile" fire, which has escaped or ignited something it should not. A fire in a firebox that blackens the firebox is not a loss. A creosote fire in a flue is not an intended fire, and an insurer's own consumer guidance says homeowners insurance may cover fire damage to a chimney if the damage was unexpected and you did not directly cause it, as Progressive states on its fireplace and insurance page. Expect the adjuster to ask where the fire was, how far it traveled and what it damaged.

What is not covered

Maintenance on a chimney is yours. The HO-3 excludes wear and tear, marring and deterioration, and the other exclusions for rot, corrosion and settling apply too.

Wood stoves, inserts and what insurers ask

Insurers treat solid-fuel heat as a higher-hazard feature, and they differ in how they handle it. Progressive's guidance says that some insurers require wood-burning stoves to be professionally installed and inspected, while others only ask for a photo, that a stove can bring a surcharge, and that for some insurers a wood stove as the primary heat source makes a home ineligible. Other companies will have other rules, which is why the order of operations matters:

1. Ask before you buy or install. Tell your agent what you are planning and ask what the insurer requires: a professional installer, a permit, a final inspection, photos.
2. Pull the permit if your town requires one, and keep the final approval. Unpermitted work invites questions after a fire.
3. Answer application and renewal questions accurately. Many applications ask whether the home has a wood stove and whether it is a primary or secondary heat source. A wrong answer can give an insurer grounds to contest a claim later.
4. Ask about the premium effect and whether the surcharge is on your declarations page.
5. Keep installation records with your policy documents.

Progressive notes that a gas fireplace generally carries lower fire risk than a wood-burning one, and insurers may ask about other fuel types separately. how insurers decide whether to insure a home explains how underwriting rules sort risks.

The maintenance record that matters

The U.S. Fire Administration reported that heating fires in residential buildings averaged about 34,200 a year in 2017 to 2019, with 165 deaths and $367 million in property loss, making heating the second leading cause of residential building fires. Fires confined to chimneys, flues or fuel burners were 77% of the total. In the larger fires that spread, "operational deficiency," a category that includes failure to clean equipment, contributed to 23% (see the USFA report).

The Chimney Safety Institute of America cites NFPA 211, the standard for chimneys, fireplaces and vents, in saying they should be inspected at least once a year for soundness, freedom from deposits and correct clearances, with cleaning and repair as needed. Its homeowner guidance recommends sweeping a masonry fireplace chimney at 1/8 inch of sooty buildup, or sooner if there is glaze, and says an annual inspection applies even to chimneys you rarely use, because animals can nest in the flue.

Keep the invoices. The HO-3 has no exclusion for a skipped sweeping, but a record of annual inspections is the strongest answer to any question about how the fire started, and it supports a clean renewal. See home maintenance that keeps you insurable.

A hypothetical claim

Say your dwelling limit is $400,000 and your deductible is $2,500. A creosote fire in the flue cracks the liner and chars the framing around the chimney chase. A Level 2 inspection afterward finds that the chimney crown was already cracked from freeze and thaw. The figures are invented.

If a chimney fire happens

1. Get everyone out and call the fire department, even if the flames seem to be contained in the flue. Fire can travel through wall cavities and the attic.
2. Do not use the fireplace or stove again until a qualified chimney professional has inspected it. NFPA 211 calls for at least a Level 2 inspection after a chimney fire.
3. Photograph the damage before cleanup, including the firebox, the chimney exterior and any scorched framing.
4. Report the claim and give the adjuster the inspection report, your sweeping records and any installation paperwork.
5. Check the attic and the walls around the chimney for hidden char before repairs close them up. If there is more damage than the first estimate showed, ask for a supplement.
6. Protect the home from further damage, and keep receipts. See reasonable repairs.
7. Use the home insurance claim checklist to track the claim.

If embers escape and damage a neighbor's property or start a brush fire, the liability coverage in the policy responds to the neighbor's claim; see personal liability.

Key takeaways

• Fire and sudden smoke damage from a chimney, fireplace or stove are covered, including spread to the rest of the house. Deterioration, sweeping and routine chimney repairs are maintenance and not covered.
• Wind, hail and falling trees that damage a chimney are covered. Earthquake damage, nesting animals and settling are excluded.
• Tell your agent before installing a wood stove or insert, because insurers vary on installation proof, surcharges and eligibility.
• NFPA 211 calls for annual chimney inspection, and a chimney fire calls for a Level 2 inspection before reuse, so keep every invoice.
• Report accurately on applications whether you have wood heat and whether it is your primary source.