Why Fire Damage Claims Are Sometimes Underestimated by Insurers

Fire damage can affect far more of a property than what is immediately visible. Smoke, soot, heat, and structural impact often extend beyond the primary burn area. As a result, insurers sometimes underestimate the scope of damage or the cost of repairs. This article explains why this happens and how policyholders can prepare stronger evidence.

1. Hidden Smoke and Soot Damage

Smoke can travel through loft voids, cavities, and ventilation systems.

How this leads to underestimation:
Insurers may focus on the main burn area and overlook secondary contamination.

2. Electrical System Impact

Fire can damage wiring, fuse boards, and appliances even if they were not directly burnt.

How this leads to underestimation:
Electrical issues may require full rewiring or replacement, which insurers may initially question.

3. Structural Weakening

High heat can weaken beams, joists, and structural elements.

How this leads to underestimation:
Structural defects may not be visible without specialist inspection.

4. Disputes Over Repair Scope

Contractors may recommend:

• Stripping out plaster

• Removing insulation

• Cleaning or replacing structural timber

• Rewiring

• Full redecoration

Insurer-appointed contractors may suggest less extensive works.

5. Contents Valuation Issues

Insurers may:

• Reduce valuations based on age

• Request proof of ownership

• Apply wear-and-tear deductions

This can significantly reduce settlement amounts.

Summary

Fire damage claims are sometimes underestimated because the extent of structural, electrical, and smoke-related damage is not always visible. Clear evidence and independent guidance help ensure your claim is assessed accurately.