Standard home insurance policies in the U.S. typically cover accidental fire damage, including fires that start inside the home (1). However, payouts are not automatic in every situation. Insurers may take a closer look at claims involving space heaters, particularly if there are questions about whether the device was used safely or according to manufacturer instructions.
One attorney with years of experience in insurance litigation told Tampa Bay 28 that insurers are especially strict when reviewing damage tied to these appliances and may reject a claim if there are signs of improper use.
"Space heaters are notorious for causing fires; everyone hears about that and knows about that and insurance carriers are going to be careful to cover the claims and investigate claims," said Charles Gallagher III (2).
How space heaters could leave consumers paying out of pocket
According to the National Fire Protection Association, space heaters are a leading cause of home fires in the U.S. (3). Insurers are aware of these elevated risks and, consequently, often look closely at space heater-related claims.
Most home insurance policies cover damage caused by space heaters, claims Gallagher III, but there are a number of ways that coverage could be voided. Examples he cited include if the appliance is used as a primary rather than secondary heating source, its age, whether it was plugged into a power strip or extension cord instead of directly into a wall outlet, and if it was placed close to flammable materials (2).
Issues could also arise if the heater was left unattended, or if any other safety instructions in its manual were ignored. “They want to make sure it's being used pursuant to its instructions and if not, that might be a basis for denial," said Gallagher.
Given the high potential cost of fire damage, insurers tend to be thorough. They usually examine documentation, fire investigation reports and policy exclusions to make a decision and will jump at any chance to deny a claim and save some money. Depending on the findings, an insurer may approve the claim in full, issue a partial payout or deny coverage altogether.
Whether you own your home or rent, the financial stakes can be significant. Fire damage tied to space heaters can easily reach tens or hundreds of thousands of dollars once structural repairs, personal property losses and temporary housing costs are factored in.
In the U.S., homeowners typically carry home insurance to cover fire damage to the structure and contents of the home, while renters rely on renters insurance — often known as an HO-4 policy — to cover their personal belongings (4). While the homeowner is responsible for insuring the property, a renter could still face financial liability if negligence on their part is determined (5).
If insurers conclude that safety guidelines were ignored, a tenant could be held financially responsible. A landlord or their insurer may pursue reimbursement for damages, and a renter’s insurance policy may not cover the loss, leaving the tenant liable for both personal property and damage to the unit.
