US Home Insurance, USA House Insurance, Homeowners Insurance in the US, US Household Insurance

By: EconomyWatch   Date: 26 May 2010

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US home insurance covers financial expenses associated with the repair or replacement of an insured home, property or valuable contents in the event of fire, theft or natural disaster. It also covers the financial liability of the homeowner in case a third party is injured due to his or her property.

Types of US Home Insurance

USA house insurance has a number of standard forms which may vary based on the states, such as:

HO 1: It provides basic coverage to the building against fire and theft.

HO 2: This form offers broad coverage in comparison to HO 1. It covers damage to the home due to natural disasters, such as windstorm, hails, explosion and other accidents, such as steam, bursting of cooking gas cylinders and vandalism.

HO 3: This form covers loss to the home and attached structures, such as garage, lawn, landscaping and garden. It is the most preferred US home insurance policy. However, an individual should read the exclusion clause of the policy document carefully.

HO 4: This is basically a tenant's policy and does not cover the building. HO 4 covers valuable contents and other belongings against fire, theft and natural disasters. It can also cover medical expenses and financial liability resulting from property collapse.

HO 6: This policy targets condominium owners. It covers factors not considered under personal home insurance of the residents and association US home insurance policy.

HO 8: This is meant for older homes. It offers building modification, and not replacement, in case of damage to the property.

Tips for Buying US Home Insurance

  • Buy a policy that offers entire replacement or repair expenses.
  • An individual has to ensure that the property and the contents are insured against their current market value.
  • Buy insurance from a reputable insurance company. Always check the claim resolution statistics and credit history of the insurance company.
  • It is advisable to buy a policy that covers expenses of temporary shelter, in case of entire collapse.
  • Loss due to earthquake and floods is not covered under the home insurance policy. Also, jewelry is excluded from the valuable contents list covered by insurance.

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