Contents of a home insurance contract in the United States
Getting good homeowners insurance in the United States provides the peace of mind that comes with protecting a family investment. But what do these insurances cover?
It is
important to know the specific levels of protection offered on the replacement
value of the home. The first step, obviously, is to carefully study the offers
of the insurance market to decide what, in addition to economy, will provide us
with security.
Home
insurance contracts in the United States are varied, depending on the company
and the particular conditions that apply.
Offers in the insurance market to know the best coverage
There are
many insurance companies in the market willing to convince us to have the best
homeowners insurance coverage in the United States.
Acquiring a
policy that provides security and peace of mind implies a detailed study of
these proposals. It is essential to contract with recognized companies, with
clear policies, verifiable experience and ample knowledge of the insurance market.
They must
present clear and detailed contracts with coverage, insured sums, indemnities,
response time and permanent communication at the time of the claim.
Types of insurance companies
Depending
on the risk, coverage and type of home, there are companies adapted to each
need, offering policies for:
- Own homes
- Rented
homes
- Mobile
homes or trailers
Risks covered on the property
The key is
to review all aspects and verify the claims that generally affect the structure
of the dwelling and that are covered, such as damages due to:
- Weather
or climatic phenomena
- Falling
trees, airplanes or other objects
- Fire or
explosion
- Theft
Coverage Limits
The maximum
dollar amount that the insurance company will reimburse in the event of a loss
covered by the policy.
Standardized
homeowner's policies
There are
insurance companies that specifically work with standardized homeowners
policies with standard forms that are very similar to each other.
- Broad
form policy, which covers only specific and expressly listed perils.
- Special
form policy, which assumes coverage of all risks on the dwelling only, unless
expressly excluded.
- Broad
form plus policy, generally applied to high cost dwelling which covers all
perils, covers dwelling structures, personal property and other damage.
- Modified
form policy, applied to homes where the cost of reconstruction is above market
value in the area.
Additional coverages on property and persons
There are
policies that, in addition to the coverage for damages caused to the dwelling
as real estate, offer reimbursements for losses derived from the main coverage,
such as:
- Coverage
to the personal property of the family that is located inside the house at the
time of the loss. Generally, these are the goods of daily use such as:
furniture, clothes and footwear, household appliances, etc.
- Liability
arising from the loss for damages caused to third parties such as neighbors or
eventual visitors to the home. Includes damage to neighboring properties.
- Medical
expenses to cover eventual medical bills due to an accident of a visitor inside
the home.
- Expenses
derived from the repair of the home, this coverage includes payment of
temporary housing, relocation and food.
What are deductibles?
It is the
amount or percentage established in the contract that the insured must pay
before the company assumes the insured amount. In some cases, and by prior
agreement, the deductible is deducted from the amount of the indemnity.
Exclusions
When
dealing with homes, it is convenient to be clear about the coverage of the
property inside and outside the home.
In
addition, excluded losses should always be clearly identified in the body of
the policy, since each contract offers different conditions. In general, the
claims are as follows:
-
Earthquakes or snowstorms
- Riots,
looting or street riots
- Floods
The Federal
Emergency Management Agency in the United States offers through the NFIP
program the possibility of acquiring special insurance policies designed to
cover these incidents.
Supplemental policies
Once we
know the exact eventualities that are not covered by the policy we are
subscribing, we should consider the possibility of contracting complementary
policies.
Depending
on the area where the home is located, there is the possibility of the
occurrence of more or less frequent phenomena. In these cases, in order to
protect our property, the investment of taking out an additional insurance
policy or the extension of the existing policy will provide us with security.
Important recommendations when taking out a policy
In
addition, to the previous observations, when acquiring a homeowners insurance
policy in the United States it is important to take into account:
- To have
the emergency contact of the insurance company to report any claim 24 hours a
day.
- Always
have, outside the home, a copy of the insurance policy subscribed. It. It is
indispensable for any consultation on coverage or indemnity or for claims and
reports.
- To
frequently update the replacement value of the insured property, in order to
know if it is within the indemnity limits per loss.
-
Generally, damaged property is replaced at the value of new items, up to the
indemnity limit of the policy.
- Adapt the
policy to your particular interests, i.e., give more coverage to the structure
of the property. Or, on the contrary, give priority to the property contained
inside the house.
Who to turn to?
Throughout
the United States there is an Insurance Commission, which regulates and
controls the entire insurance industry.
You can go
to the offices of Consumer Protection or in any case to the courts to settle
any controversy in this regard.
