Fire damage is a major risk for real estate investors and homeowners. Whether you’re flipping houses, managing rental properties, or building from the ground up, a fire can wipe out months (or even years) of hard work, capital, and potential profit.
With an increasing number of structure fires caused by electrical faults, cooking accidents, and even wildfires in certain regions, safeguarding your investment isn’t just smart—it’s essential. In 2024 alone, nearly 2,000 structures in California were lost to wildfires, but fire risks extend far beyond the West Coast. The question isn’t if a fire might happen—it’s how prepared you are when it does.
What Areas to Fire-Proof in an Investment Property
Not all properties are created equal when it comes to fire resistance. Here’s how you can proactively protect your investment:
1. Detached Structures Matter
Garages and sheds often house flammable materials like gasoline, chemicals, and old furniture—prime fuel for a fire. Keeping these structures detached from the main property can help prevent flames from spreading to the home itself.
2. Invest in Fire-Resistant Windows
Single-pane windows are highly vulnerable to heat and flames. Upgrading to insulated, dual-pane glass can help protect interiors and slow the spread of fire.
3. Roofing: Your First Line of Defense
A property’s roof is one of its most vulnerable points in a fire. Use Class-A fire-rated materials like slate, tile, or standing seam metal to reduce risk. Additionally, steeper roof pitches can help embers roll off before they ignite.
4. Fire-Resistant Siding and Perimeter Protection
Siding plays a crucial role in fire resistance. Fiber cement siding is a high fire-resistant option compared to wood. Fiber cement acts as a heat barrier, preventing the spread of heat/fire to the inside of the house. Other options include stucco, brick, or stone. Additionally, adding a perimeter of crushed stone at the base of the structure can prevent fire from creeping up through flammable debris.
5. Wood Decking: Treat It or Replace It
If your property has a wood deck, ensure it’s treated with fire-resistant coatings. Alternatively, composite or fire-rated decking materials offer better long-term protection.
6. Landscaping: Reduce Flammable Vegetation
Overgrown or dry landscaping can act as a fire accelerant. Keep trees at least 30 feet apart and maintain at least 20 feet of clearance between shrubs and the house. Regularly clear dead leaves and branches to minimize risk.
Why Fire-Proofing is a Smart Investment Strategy
Fire-proofing isn’t just about safety—it’s about protecting your bottom line. Here’s why real estate investors should make it a priority:
Safeguard Your Investment: A fire-damaged property can lead to expensive repairs, insurance complications, and loss of rental income.Increase Property Value: Fire-resistant features make properties more attractive to buyers and tenants.Lower Maintenance Costs: Fire-proofing measures reduce the likelihood of catastrophic damage, minimizing unexpected expenses.Stronger Insurance Positioning: Many insurers offer better coverage and lower premiums for fire-resistant properties, providing long-term savings.
How Dominion Financial Can Help
At Dominion Financial, we understand the importance of protecting your investment. Whether you’re financing a fix-and-flip project or a new construction, we provide the capital you need to build smarter and safer.
Up to 100% LTC on Fix and Flip LoansUp to 90% LTC on Ground-Up Construction LoansFast, Efficient, and Reliable Lending
Fire-proofing may require an upfront investment, but it pays off in long-term asset protection, tenant security, and resale value. When you’re ready to finance your next project, Dominion Financial is here to help you build properties that stand the test of time.
