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Home insurance

Everything you need to know about home insurance in the USA

Home insurance is the second most popular type of insurance. It is second only to car insurance. Many people voluntarily shell out money for real estate insurance policies. The latest statistics show that 95 percent of citizens do this, despite the rise in technologies aimed at ensuring the safety of their homes. And this is logical: home insurance is additional protection in unpredictable and unwanted cases that threaten the loss of property. 

Types of home insurance

There is a separate type of home insurance for tenants. It provides compensation for damage caused to a rented property and movable property. Thus, the tenant does not have to pay the home-owner for damage caused by himself or by another person. Also, the fine will not have to be paid if the damage was caused during the transportation of personal belongings, for example. Personal belongings include luggage, jewelry, etc.

Home insurance that is used as a workspace, for example, by small entrepreneurs or individuals in the liberal professions, is carried out at different rates and policies. (Small Business Insurance). The reason for this is the greater saturation of such housing with social devices and equipment, as well as more free access of third parties to such office apartments. Insurance companies carefully monitor the nature of the use of the insured home, refusing to pay ‘violators of the convention’.

Over the years, US citizens have developed a kind of reflex to home insurance. The point here is not only in the impressive pictures of the destruction caused by typhoons and hurricanes, circulated by the media. Almost all housing is purchased in installments. And one of the prerequisites for a loan is the insurance of the purchased house or apartment.

How much does it cost?

The price of insurance varies depending on how close the house is to the coast and how big it is. Even various details and nuances are taken into account. For example, if there is a pool or a dog on the territory of the house. And even the breed of the dog matters. After all, home insurance covers not only the restoration of the house in the event of a fire or tornado but also medical bills that can arise if someone from your neighbors is bitten by your dog.

If you decide to do everything to reduce the price of insurance, you need to do the following.

  1. Carry out an alarm.
  2. Install new windows (windproof – from strong winds, must withstand hurricanes).
  3. Replace the roof.

But, if you decide to do all this yourself, then you will not see any discounts. You need to call a company that will issue you a quality certificate. Then show it to the insurance company for your discounts. It is better to find professionals who can replace the roof, for example. In this case, it will not be done according to the “building code” and will not be counted by the insurance company.

And it is better to first consult with your insurance agent which contractors they recognize as reliable. Or, when hiring a firm, ask if they issue a quality certificate so you get a 5 or 10 percent discount on your insurance policy.

The main type of home insurance policies in the USA

Homeowners -1 is the main type of home insurance policy. It protects residential premises and personal property from 11 types of risks. 

This includes:

  • fire or lightning;
  • damage from storm or hail;
  • explosion;
  • riots;
  • plane crash;
  • the collision of a vehicle;
  • smoke damage;
  • vandalism or malicious harm;
  • theft;
  • damage to materials that make up part of the structure, or glass;
  • eruption;

Home insurance is a good reason to ensure the client not only against associated risks but also against all possible misfortunes.

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