How Does Homeowners Insurance Work in The USA?

Homeowners insurance in the USA includes those houses whose owner regularly inhabits them. There are other policies for different cases where the owner has them for rent, for renters, and mobile homes, in addition to condominiums where the form of contracting may vary a little due to other insurance that usually exists additionally.

What Does Homeowners Insurance Cover?

Homeowners insurance in the USA has several coverages to cover different risks. Some of the most important and that is focused on the highest impact damage are:

Specific protection of the value of the home against various damages, such as falling trees, planes, and other objects, collision, fire, explosion, theft damage, and various weather events. Some risks are not included directly and endorsements must be contracted specifically, as in the case of earthquakes and various wind storms. It protects the main house, fences, garages, and sheds, even separated from the main structure.

personal property. Under this covered risk, the personal assets of the family are protected. These cover contents in the home such as furniture, appliances, clothing, footwear, etc. The risks covered include those included for housing and theft. Jewelry, electronic devices, and other items are covered only in what is considered common in a home. There are additional endorsements for Valuables and Electronic Equipment. Many companies cover the belongings that are in the car or that are in moving services, storage, or even when staying in hotels.

Civil liability. It financially protects the family against the damage they could cause to neighboring properties. It also covers injuries to visitors or people in the vicinity, as a result of any damage to the house or the act of pets or accidents of any member of the family with said people, without the participation of a motor vehicle. Accident injury protection generally covers worldwide.

Medical payments. Pays for necessary medical bills in the event someone experiences an incident in your home as a visitor. It does not require that there be a civil liability claim.

Loss of use or living expenses. It covers the expenses that have to be incurred in the event that the dwelling must be repaired as a result of damage due to the risks covered. These expenses cover temporary housing, food, and others.

Some other covered risks that can be protected are replacement costs, inflation endorsements, increased dollar limits, damage from sewer failure, identity theft, etc.

Are There Damages Not Covered by Home Insurance in the USA?

It is true, that there are phenomena that are a fact that is going to happen and that are not covered by any insurer. For these cases, there are government programs. A clear example of this is flood insurance, which must be insured with the NFIP (National Flood Insurance Program), which is administered through FEMA (Federal Emergency Management Agency).

What to Do in Case Of An Accident?

First, the damage must be reported to the insurer, providing the details of the insurance policy. The company will send a specialist to assess the damage and define what must be paid in each case. For this, it is convenient to have a copy of the policy in a place other than the home.

Are Insurance Companies in The USA Reliable?

Yes, all insurers intend to fulfill a service to society in addition to obtaining income. The causes of controversies are usually human errors of the workers of an insurer, unclear policies, or greater restrictions in some.

For this reason, it is convenient to compare the differences between different insurers and choose the one that is clearer, with fewer requirements and quick procedures for payment. In case of controversies, there is the NAIC and the courts of each state act as arbitrators. In addition, you could also go to the Consumer Protection.