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When buying a house in the United States, you will encounter this question: how to buy homeowner insurance? Faced with a variety of insurance policies and insurance companies, novices are often confused. Today I want to share with you some things about homeowner insurance in the United States: What are the types of homeowner insurance? How to buy it? Are there any tips to save money?
What is Home Insurance in the United States?
Home insurance refers to the insurance that homebuyers purchase for their own homes. It is mainly to ensure that homeowners can receive compensation when the house encounters an accident or sudden disaster, so as to reduce the property loss caused by the disaster.
What Types of Home Insurance Are There in the United States?
In the United States, the following types of home insurance are commonly used (HO is the abbreviation for Home Owner):
HO-1 Basic Coverage
This is the most basic type of home insurance, which mainly compensates for the losses caused to the house by fire, so some people also call it fire insurance. Generally, buyers who take out loans need to purchase it!
HO-2 Broad Coverage
In addition to HO-1, the company also provides insurance for damage caused by electric shock, heavy pressure from ice and snow, frozen water pipes, falling objects from the sky, rupture or burnout of the water heater or air conditioning system, and indoor water leaks.
HO-3 Full Insurance (Special Form)
This is the most common type of home insurance purchased by the public. In addition to HO-1 and HO-2, full coverage also covers almost everything except war, nuclear disasters, floods, earthquakes, and ground subsidence. It also covers accidents that happen to guests indoors and outdoors, accidents that happen to passers-by outdoors, and compensation for medical expenses and attorney fees after pets bite people.
HO-4 Renter's Insurance
This is for homeowners who rent out their properties, and it insures the personal property of the tenants in the rented properties.
HO-5 Comprehensive Insurance
The coverage of a castle is wider than that of an HO-3. It includes damage to the house and loss of personal property caused by all risks other than those mentioned in the insurance terms, and the premium is also more expensive.
HO-6 Condominium Coverage
The insurance covers losses to apartment owners and personal property, guests and passersby caused by accidents, fire, theft, and water leakage. Homeowners need to read the apartment owner's (HOA) regulations carefully to determine the amount of insurance they need to purchase.
HO-7 Mobile Home Coverage
Home insurance for mobile homeowners.
HO-8 Older Home Policy
Because the market value of old houses is lower than the reconstruction price, old house insurance allows homeowners to insure at a market price that is lower than the reconstruction price.
5 Money-saving Tips to Lower Your Home Insurance Premiums!
1. Shop around
Compare several insurance companies to see which one has the cheapest price. But in addition to considering the price, you should also pay attention to whether the insurance company can provide high-quality service when you need assistance with claims.
2. Improve housing security
For example, installing smoke alarms, anti-theft cameras and a series of safety protection measures in the house.
3. Distinguish between the amount paid for the house and the cost of rebuilding
When deciding the amount of insurance, do not include the value of the land, because the land under the house is not subject to risks such as theft and storms. Otherwise, you will have to pay more for insurance than you actually pay.
4. Stick to the same insurance company
If you have been insured with the same insurance company for several years, you may be treated as a long-term policyholder and receive special discounts.
5. Bundle home and auto insurance
If the insurance company you buy your car insurance from is good, you can consider buying home insurance from them as well. Insurance companies usually give you certain discounts.
How Do I Buy Home Insurance?
There are so many types of home insurance, so which one should you buy?
Single Family House: Purchase HO-3
A detached house means the owner owns the entire house, foundation, and lot, so he is responsible for all of it and needs to purchase HO-3.
Townhouse: Buying HO-3
The ownership and responsibilities of townhouse owners are similar to those of single-family houses, so they also purchase HO-3 and will not be introduced in detail. However, if there is a homeowners association (HOA), the insurance information of the homeowners association must be provided.
Condo: Buying a HO-6
The ownership of an apartment owner only includes the area within the walls (within the unit), so he is only responsible for this part. The roof, corridors, elevators, sewer pipes between the walls, house structure, community roads, public facilities, etc. outside the walls are all the responsibility of the HOA and are usually covered by Master/HOA Insurance.
