It is insurance of property whose benefit is the coverage of losses and damages to the house of a person and property that there have. It also provides liability coverage before any accident that occurs in the home or property. The validity of a policy of this type of insurance is usually 12 months (one year).
In the United States of America the most common way to acquire a property is through a mortgage loan in which is financed in monthly installments the property value. To purchase this insurance there are two possible ways:
- One is in a particular way in which the owner advises and looking for an insurance that meets your needs and is economically desirable.
- The other way is by the lender bank, which gives an insurance for an additional cost acceded to the monthly mortgage payment. In this case the bank generates an escrow account, that is to say, raises that extra payment per month by insurance and uses the funds to pay off the debt with the insurance company once overcomes the invoice issued by the company.
Types of coverage
- Named peril coverage: is the policy that covers specifically detailed in the same, that is to say, has a rather limited coverage.
- Open risk coverage: is the policy that provides coverage for all losses generated by a blight on the property except those which are referred to in the same.
Possible scope of coverage
Basic dangers: Provides coverage in situations of:
1. Fire. 2. Electrical Storm, wind or hail. 3. Explosions. 4. Vandalism. 5. Collision of aircraft or vehicle. 6. Riots or civil commotion.
Spacious Hazards: This policy includes six dangers more than the basic covering the most common accidents that can damage to a property:
1. All the dangers. 2. Theft or damage due to theft. 3. Fall of external objects on the property that cause damage. 4. Weight of the ice and snow. 5. Freezing of plumbing. 6. Accidental damage of water. 7. Voltage Spike.
All Risk Coverage: This type of policy provides full coverage as long as you have caused damage to the property is not in the list of exclusions” composed by:
1. Ordinance of the law. 2. Earthquake. 3. Floods. 4. Fault power supply (energy efficiency). 5. Negligence. 6. War. 7. Nuclear danger. 8. Intentional acts (damage caused by the owner).
Coverage of the building
This policy provides coverage of the structure of the building and some separations as the garage, shed and other structures belonging to the same property. It is important to pay attention to the details of the policy since some do not provide coverage in terms of swimming pools, gates or fences.
Coverage of contents
This policy provides coverage of personal effects that may be on a property, such as the furniture, appliances, jewelry, clothes, etc.
The insurance companies provide a limit amount of coverage for examples previously mentioned.
The next exclusions are common among all insurance companies: maintenance by wear and tear, defective workmanship, mechanical or electrical problem and surplus to the coverage amount specified in the policy.
In the event of a loss, the insured must communicate with your insurance company as soon as possible to report the incident. After being discharged from the incident, a claims adjuster of the company will investigate the claim and will be in contact with the insured to ask for relevant information about the incident.
The complaint of the incident carried out by the insured in the insurance company, if this leads to the company should compensate, will be reflected in the rate with an increase in the monthly rate, the non-renewal of policy or cancellation.
The insurance company will have a common network in which share data of insured persons, claims, insurance policies, and more…Although it is not mandatory, home insurance is a very good option to take into account and evaluate carefully.
This is important to understand that there are factors external to us that can cause us great losses and we cannot do anything for that not to happen for example a short to start a fire. In case you have insurance, you will be able to be calm because it provides coverage of both the structure of the home and possessions they have inside.
This also gives the tranquility of the liability coverage you pound of any judgment that I want to start by an accident in your home, as it will answer the company for you. Date yourself that peace of mind and ensures your home buscanso a type of insurance that suits your needs.