Home Insurance

Home Insurance, commonly called hazard insurance or homeowners insurance is a form of property insurance that covers private households. This is an insurance, personal insurance protection, the losses to the house of a man content, loss of use (additional living expenses) or loss of personal belongings other than house and apartment owners as well as liability insurance for accidents that may occur home or in combination, in the hands of the homeowners in the area of ​​politics. It requires that at least one of these insured persons occupying the house. Residence Policy (DP) is similar, but used for residential buildings not eligible for various reasons, such as vacuum / non-residential buildings, seasonal / second homes or age.

This is a multi-line insurance, which property and liability insurance coverage divided by premiums, which means that the single premium paid for the risks means. Standard form of the distribution of coverage in various categories, and provided that coverage is usually a percentage of Coverage A, the possibilities for the main dwelling.

The cost of homeowners insurance often depends on what it will cost, the house and an extra-extra items are insured assembly attached to the policy should be replaced. Insurance itself is a long-term contracts and what will and will not be paid in case of various events. Typically, as a result of flooding or war claims (generally, the definition of a nuclear explosion from any source), including the exclusion of other standards (eg termites) are not. Special insurance can be purchased for these possibilities, including flood insurance. Insurance must be adapted to the replacement cost, usually at the request of inflation or the cost index factor.

Home insurance contract generally applicable contract for a fixed period. Assured provided payments to the insurance premium. Insured must pay the premium offered each semester. Most insurers charge a lower premium if it is less likely, the house is damaged or destroyed seems: for example, if the house is right next to the fire station when it is equipped home with sprinklers and fire alarms, or where the issuer Home wind mitigation measures such as storm shutters. Perpetual insurance, which is a kind of home insurance without a certain period can also be achieved in certain areas.

In the United States

In the United States, most home buyers borrow money in the form of a mortgage loan and the lender always requires the buyer to protect homeowners insurance as a condition for a loan to the bank as the house was destroyed. Anyone with an interest in insured property must be listed on the policy. In some cases ignores the need for mortgage holders mortgage holders of homeowners are closed when the value of the land is greater than the sum of outstanding mortgages. In a close case like this, even the total destruction of a building does not affect the ability of the lender and then the full amount of the loan.

Home Insurance in the United States may differ from other countries such as England, land subsidence and the subsequent formation of failure is usually covered by insurance. As previously reported, the United States based insurance coverage, the collateral damage is reduced by leakage, and eventually eliminated.

History

The first homeowners policy per se in the United States was introduced in September 1950, but the same policy in Britain and some areas of the United States existed. In the late forties U.S. insurance law will be reformed in the process of the law was written a few lines, so to homeowners should obtain the force of law.

Before the year 1950 there were separate policies for different hazards that can affect the house. Buying a home owner would separate policy, fire, theft, personal property, and the like. In the year 1950, a policy that all homeowners insurance they needed on a full policy now. But this policy to understand the various insurance companies and heavy.

Needs standardization grew so great that a private company in Jersey City, New Jersey, Insurance Services Office, also known as ISO, was founded in 1971 to provide risk information and issued a simplified homeowners policy for resell to insurance companies. This policy has changed over the years.

Type of policy

Currently, the ISO has seven standard homeowners insurance is generally used:

HO1 - Homeowner Association Policy form
One form of the fundamental policy decisions that provides coverage for a house listed 11 risks, the content usually in the form of reporting, but must be explicitly stated. Hazards are fire and lightning, windstorm or hail, vandalism or malicious mischief, theft, damage to vehicles and aircraft, explosion, riot or insurrection, damage to glass, smoke, volcanic eruptions and personal liability. Exceptions are floods, earthquakes.

HO2 - Homeowner broad form policy
A comprehensive form that provides coverage on a house more than 17 hazards listed (including all 11 in the HO1). Coverage is usually a "named risks" policy, a list of events which are also discussed.

HO3 - Special Form Homeowner Policies
Form, which typically uses the most comprehensive family homes. This policy provides "all risks" coverage excludes home with a number of risks, such as earthquakes and floods. The content protection called danger. (Note: "all risk" is much worse than the name exceptions (for example, unless expressly excluded, fall) below)

HO4 - renter insurance
The "tenants" Form is for the tenants. It covers personal property against the same dangers as part of the contents of HO2 or HO3.

HO5 - Premier homeowner policies
HO3 covers the same plus more. This policy openly discussed the contents of the danger until the cause of the loss is not explicitly stated in the policies that lead to the fact that losses are borne excluded. (HO15 Can it be achieved with support for HO3)

HO6 - Condo Policy
Form for owners of apartment buildings.

HO8 - Old Houses

The "Change of Coverage" form is for the old house owner-occupied replacement costs are much higher than the value of the property market.

Fertility

After the fall NAIC Report, 1998, 83% of households by the policy owner-occupied homeowners. Of these, 87% had a Special Representative HO3 and 9% had more expensive HO5 extended. Both measures are "all risks" or "danger is open", meaning they all risks except those specifically excluded from cover. 3% HO2 is broad, with only specific named hazards. Others are Basic and HO8 HO1 has changed, the smaller scale. HO8, also known as the old house insurance, the option to pay only the actual cash value of the damage is known a substitute.

13% of the remaining home insurance insured by the tenant or a condo. Two thirds of global content and HO-4 form, including as tenant insurance, the contents of a house is definitely not the policy is written from the ceiling of the complex known to be covered. This policy, the obligations of the injury and the negligence of the tenant living in the area of ​​coverage. overall coverage area events such as lightning, riot, aircraft, explosions, vandalism, smoking, theft, storm or ice, falling objects, volcanic eruptions, snow, snow and ice are heavy. The rest have policies HO-6 Unit-owner, developed the well-known as home insurance for homeowners and building coverage for the insured and properties stored in the building. Designed to provide written permission from the gap between the cover by a blanket policy for the whole neighborhood or building and personal belongings in the house. of the Association of the Bar to the amount of compulsory insurance. In Florida, for determining the extent of coverage by the Act - 718.111 (1911) (F).

Moreover, about 2.4% of households by the policies of the live-fire under [7], which includes damage to structures and are usually sold on a non-commercial owners of rented houses. It is also private property owners (such as appliances and furniture). Owner liability insurance can be extended from the main building on their own and thus not part of the live fire policy are made.

Normally, consumers can directly save money by not buying their insurance from the company through an agent, but not for many companies, home insurance direct [9] to sell. However, experienced agents offer expertise (in particular know-how with the local insurance office environment) may be less of an entity. [10]

Class Reporting

For each policy, there are usually five reporting format. It is based on the standard Insurance Services Office, or the American Association of Insurance Services.

Part I - Real estate news

Coverage A - Apartment

Contains the value of life alone (not including land). Usually, the co-insurance clause provides that during the stay insured with 80% of current value, the loss will be adjusted to current costs, the policy limits. This is the place to provide a buffer against inflation. HO-4 (tenants insurance) often lack the A series, but has an extra protection for the repairs.

Coverage B - Other structures

Including other structures around the property, which is not used for commercial activities, except a private garage. Usually from 10% to 20% coverage of a limited support with additional funding.

Coverage C - Personal Property

Covers personal property, with a limit of theft and the loss of a certain class of objects (such as $ 200 for bank notes, gold coins, medals, etc.). Usually 50 to 70% of coverage A is for content, consumers pay more than necessary insurance required funds. This led to calls for more choice.

Coverage D - Loss of use / additional living expenses

Including the cost of additional living expenses (ie rent) and the fair rental value will, if part of a rented facility, but only the rental income for the rental space, which really made no such benefits available.

Additional coverage

Includes a variety of costs such as garbage removal, repair of normal damage to trees and shrubs for hazards specific name (not the most common causes of damage, wind and ice), changes in the fire, the abolition of property, credit cost identity / theft, valuation losses will collapse, furniture rental, and several other buildings. It depends on the form.

Except

The danger of an open policy, certain exceptions are provided in this section. These generally include movement of the earth, water, electric, neglect, war, nuclear hazards, accidental loss, while the cause of the injury (for HO-3).

In the United Kingdom

As in the U.S., the UK lender, the reconstruction value (actual cost of rebuilding the property to the current circumstances, should be damaged or destroyed) the items will be covered as a condition for the loan. It should be noted that the property market, the cost of reconstruction is often lower than the value as often as the value of the property market is reflected in relation to, so only the value of bricks and mortar against to go.

A number of factors, including an increase in fraud and increasingly unpredictable weather, has seen rising insurance premiums remain at home in the UK. For this reason it is purchased, a change in the type of home insurance in the UK - because customers are price sensitive, there is a sharp increase in the number of measures of price comparison sites like Confused.com are sold


Tag: Home Insurance, Auto insurance, Types of insurance, Principles, Insurability, Legal, Indemnification, Efect, Insurers', business model, Underwriting and investing, Claims, Marketing, What Is Insurance ?