WHAT DO YOU NEED TO KNOW ABOUT HOME INSURANCE IN THE USA?
Your real estate project in the United States involves a set of varied elements. Alongside financing, rental management and the good performance of your property, the question of insurance inevitably arises. This is why it is important to understand how home insurance works in the USA. Investing in the US tells you more.
WHAT IS HOME INSURANCE IN THE USA FOR OWNER OCCUPANTS?
In the United States, real estate insurance covers all the guarantees that protect an investment. These include housing, i.e. the house, as well as other structures such as fences, as well as personal property, against accidents and incidents such as fire and flooding.
Home insurance in the USA also offers liability coverage to cover property damage and injury that members of your household may cause to others. Liability coverage also includes legal defense and amounts to be paid out if you are sued for injury or property damage. Typically, a typical home insurance policy includes coverage for additional living expenses (in the US, this is called ALE, Additional Living Expenses). For example, if you cannot stay at home for a reason related to damage to your home, and these are covered by your insurance policy, the additional costs may include hotel accommodation, restaurant bills and other services, such as pet boarding.
EVALUATE AND COMPARE HOME INSURANCE OFFERS IN THE UNITED STATES
As in France, to get the best price for home insurance in the USA, the most interesting thing is to compete.
To save time, one strategy is to go to the websites of insurers online and request a quote by company. There are also platforms offering free quotes for several insurance companies. You will need to fill in the fields related to the characteristics of your home on a form and choose the level of cover that suits you and your needs.
To insure your property, it is also possible to use an independent insurance agent. The latter can offer you several free quotes and answer your questions about the types of coverage you need. Independent agents, in fact, have a wide knowledge of home insurance in the USA and a serious professional will not fail to advise you objectively.
In the United States, there is also a type of professional called “Captive Insurance Agent”. Literally, this could be translated as “captive insurance agent”. It is an agent offering all the insurance policies of a single company. He can discuss with you the different types of coverage and their benefits. They can also offer you a free quote.
HOW IS IT POSSIBLE TO SAVE ON HOME INSURANCE?
In the United States, the most common home insurance discounts are for:
Discounts for new or renovated homes: the price to be paid is minimized due to improvements in the electrical and plumbing systems; Discounts related to the security of your home, due to the installation of fire safety devices (smoke detectors, sprinklers) and security of the home and its occupants (burglar alarms, deadbolts on exterior doors, etc.) Discounts related to the condition of the roof. Some insurers offer more attractive prices depending on the age of the roof of the house. Discounts linked to the prevention of natural disasters, in particular if your house is equipped with specific installations (storm shutters, unbreakable glass panes, etc.) Discounts for multiple insurance coverages, also known as “bundling”. This implies subscribing to more than one type of insurance policy with a single company: car, motorcycle, home insurance, etc. Generally, grouping allows you to benefit from the best pricing conditions. Multi-insurance discounts: If you insure more than one home with the same insurer, you can expect to get better prices. No-claims discounts, which are a form of bonus if owners have had no claims in the past months/years. Discounts for good behavior, linked to the payment of your insurance without fail or to the payment of the insurance in full. Discounts related to the profession of the insured, an organization or an association. For example,
if you are a member of a union, professional organization or alumni association, some insurance companies will do something for you.
HOW TO GET THE BEST HOME INSURANCE COVER?
If you are looking for home insurance in the USA, the price is most likely one of the key elements in your decision. On the other hand, it is important that it is not the one and only factor which conditions your choice. Other things to consider when choosing your home insurance include:
Customer service: Think about when to file a claim for a problem such as a fire. The way your request will be handled is very important: your objective is therefore to find an insurer with a good reputation for customer service; Matching home insurance coverage to your needs: Your home insurance policy protects one of your most important investments, your home. You need to be sure that the cover chosen is sufficient, that is to say that you are paying the right price.
HOW TO ENSURE THAT YOUR HOME INSURANCE COVERAGE MEETS YOUR NEEDS?
If you are faced with several insurance proposals, first carefully examine each type of standard cover, adjusting it to your needs. To do this :
The “home” section of the insurance policy covers the structure of our house. It should accurately reflect the cost of rebuilding the house based on construction and labor costs in the region in which it is built. In regions prone to natural disasters, a temporary increase in reconstruction costs may be applied in the event of a natural disaster, such as a tornado. Some insurance companies offer extended/guaranteed replacement costs intended to help absorb a potential spike involving repair costs that exceed the home cover amount. Choose the right coverage for your personal property. Generally, it is between 50 and 70% of the amount of housing coverage. Suppose your home is insured for $300,000; home contents coverage is set at 50%, or $150,000. It is possible, depending on the case, to purchase additional coverage. To assess the level of coverage of goods, the most interesting thing is to establish an inventory and calculate the cost of replacing objects. Please note that certain objects, in particular jewelry, are limited to a certain lump sum. In addition, it is also necessary to take into account the obsolescence of objects and devices. Of course, a four-year-old television will not be reimbursed at the same price as a new television. If you wish to have a guarantee of the value of the new items, you will have to choose the corresponding insurance formula. Liability insurance covers property damage caused by accident by yourself or one of your household members to other people. This coverage makes it possible to pay medical bills and repairs, in the same way as a judgment in lawsuit if however you are sued. Insurance to cover additional living expenses (loss of use) covers expenses such as hotel bills, restaurant meals and pet boarding if you cannot live in your home during the work caused by damage covered by your insurance policy. The amount you have available to cover these additional costs is usually set as a percentage of the total home insurance amount. Generally, it is possible to consider more coverage, at an additional cost. In some regions, it is worth taking out additional insurance related to natural disasters. For example, a home insurance policy will cover water damage if the roof leaks due to a hurricane. However, it will not cover flood damage caused by the same hurricane. To overcome this problem, specific insurance policies should be chosen, such as flood insurance or earthquake insurance, for example. As mentioned above, it is interesting to group insurance to benefit from advantageous rates. If you live in the United States and you have one or more vehicles, or even several properties, do not hesitate to compete and compare quotes.