WHAT DO YOU NEED TO KNOW ABOUT HOME INSURANCE IN THE USA?

 WHAT DO YOU NEED TO KNOW ABOUT HOME INSURANCE IN THE USA?

Your real estate project in the United States involves a variety of factors. In addition to financing, rental management, and ensuring your property is well-maintained, the question of insurance inevitably arises. That's why it's important to understand how home insurance works in the United States. Investing in the US tells you more.

What is home insurance in the USA for owner-occupiers?

In the United States, real estate insurance covers all the guarantees that protect an investment. These include the dwelling, 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 flood.

Home insurance in the US also offers liability coverage to cover property damage and injuries that members of your household may cause to others. Liability coverage also includes legal defense and payouts if you are sued for injuries or property damage.

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Typically, a typical homeowners insurance policy includes coverage for additional living expenses (in the US, this is called ALE ) . For example, if you can't stay at home due to damage to your home, and the damage is covered by your insurance policy, additional expenses may include hotel accommodations, restaurant bills, and other services, such as pet boarding.

Evaluate and compare home insurance quotes in the United States

As in France, to get the best price for home insurance in the USA, the best thing to do is to play the competition.

To save time, one strategy is to visit insurers' websites online and request a quote from each company. There are also platforms that offer free quotes from multiple insurance companies. You'll need to fill out a form with information related to your home's characteristics and choose the level of coverage that best suits your needs.

To insure your property, you can also hire an independent insurance agent. They can provide you with several free quotes and answer your questions about the types of coverage you need. Independent agents have extensive knowledge of home insurance in the US, and a reliable professional will be sure to provide you with objective advice.

In the United States, there is also a type of professional called a "Captive Insurance Agent." This literally translates to "captive insurance agent." This is an agent who offers all insurance policies from a single company. They can discuss the different types of coverage and their benefits with you. They can also provide you with a free quote.

How can I save on home insurance?

In the United States, the most common home insurance discounts are:

New or renovated home rebates: the price to pay 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 devices for the home and its occupants (burglar alarms, deadbolts on exterior doors, etc.)

Discounts related to roof condition. Some insurers offer more attractive rates based on the age of the home's roof.

Discounts related to natural disaster prevention, particularly if your home has specific installations (storm shutters, shatterproof glass windows, etc.)

Discounts for multiple insurance coverages, also known as "bundling." This involves purchasing more than one type of insurance policy from a single company: car, motorcycle, home, etc. Bundling generally allows you to benefit from the best pricing conditions.

Multiple insurance discounts: If you insure more than one home with the same insurer, you can expect to get better prices.

Claims-free discounts, which are a form of bonus if owners have not reported any claims in the past months/years.

Discounts for good conduct, linked to the smooth payment of your insurance or the payment of the insurance in full.

Discounts related to the insured's profession, organization, or association. For example, if you are a member of a union, professional organization, or alumni association, some insurance companies will make a special offer on your behalf.

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How to get the best home insurance coverage?

If you're looking for home insurance in the USA, price is likely a key factor in your decision. However, it's important that it isn't the sole factor determining your choice. Other factors to consider when choosing your home insurance include:

Customer service: Consider when you'll need to file a claim for something like a fire. How your claim is handled is very important, so your goal should be to find an insurer with a good reputation for customer service.

Adequate home insurance coverage for your needs: Your home insurance policy protects one of your most important investments: your home. You need to be sure that the coverage you choose is sufficient—that is, that you're paying the right price.

How to make sure your home insurance coverage meets your needs?

If you're considering several insurance options, first carefully consider each standard coverage type and tailor it to your needs. To do this:

The "dwelling" section of the insurance policy covers the structure of our home. It must accurately reflect the cost of rebuilding the home based on construction and labor costs in the region where it is being built.

In disaster-prone areas, a temporary increase in rebuilding costs may apply in the event of a natural disaster, such as a tornado. Some insurance companies offer extended/guaranteed replacement costs to help offset a potential spike in repair costs that exceed the amount of homeowner's coverage.

Choose the right coverage for your personal belongings. Generally, it's between 50 and 70% of the amount of your home's coverage. Let's say your home is insured for $300,000; home contents coverage is set at 50%, or $150,000. It's possible, depending on the case, to purchase additional coverage. To assess the level of coverage for your belongings, the best way is to take an inventory and calculate the replacement cost of the items. Be careful, some items, especially jewelry, are limited to a certain fixed amount. Furthermore, you must also take into account the age of the items and appliances. Obviously, a four-year-old television won't be reimbursed at the same price as a new one. If you want to have a guarantee of the value of the items when new, you'll need to choose the appropriate insurance plan.

Liability insurance covers property damage caused by accidents caused by you or a member of your household to others. This coverage helps pay for medical bills and repairs, as well as a judgment in court if you are sued.

Additional living expense (loss of use) insurance covers expenses such as hotel bills, restaurant meals, and pet boarding if you can't live in your home while work is being done to address damage covered by your insurance policy. The amount available to cover these additional expenses is usually set as a percentage of the total homeowners insurance policy. More coverage is generally available for an additional fee.

In some areas, it's worth considering 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 won't cover flood damage caused by the same hurricane. To address this issue, it's worth considering specific insurance policies, such as flood or earthquake insurance, for example.

As mentioned earlier, it's a good idea to bundle your insurance policies to get competitive rates. If you live in the United States and own one or more vehicles, or even multiple properties, don't hesitate to shop around and compare quotes.