The most popular types of home insurance offered

The most popular types of home insurance offered
The most popular types of home insurance offered 

Here is a simplified explanation of the three types of home insurance offered by insurance companies in the United States:

1. Building insurance

If you own a property in the United States, you need to insure it. A home, with its contents, buildings, garage, balcony, front garden, and other items at risk of damage due to unforeseen risks, such as fire, earthquakes, water damage, vandalism, etc. For this you must have sufficient insurance to protect your home from such accidents.

Often, if you go to apply for a mortgage, you will likely get home insurance coverage for this purpose, along with the loan. The annuity will be determined as a percentage of your property's value, usually 0.03-0.05 percent of the property's original value.

Under this insurance coverage, you will be compensated for the loss of rental value or the cost of renting a replacement housing if your home is not fit for housing due to the damage done to it. As the owner of the property, you can also be held liable for the loss or damage of third party property or the accidental injury of any person. Therefore, this insurance covers legal fees and other expenses in such cases.

The insurance company will not cover the damages caused by the house’s depreciation that occur over time, so be sure to keep the property well to avoid paying too much to remedy the damages caused by poor maintenance.

If you plan to travel abroad for a long time, keep in mind that this cover will not be effective if the home is left vacant for more than 45-60 days, as specified in the insurance policy.

Who can benefit from this insurance coverage?

This cover is a must for realtors, whether they are tenants or tenants in the property.

2. Securing the contents

What makes somewhere your home where you rest? Certainly, the furniture and things that we place inside to give us a degree of psychological and physical comfort together. The contents of your home can include furniture, furnishings, appliances, decor and other household items. These items are at risk of loss or damage in the event of a fire, flood, earthquake, theft, etc. Thus, while the property is covered by building insurance, the home contents insurance covers the elements inside it. Some insurance policies may also cover the contents that have been temporarily removed from the building for repair, cleaning, and the like. In case your house keys are stolen, the insurance company will also compensate you for replacing the locks under this insurance.

Who can benefit from this insurance coverage?

This cover is necessary for all types of residents, whether they are tenants or owners.

3. Personal property insurance

We all have valuables that we always prefer to keep indoors as it is the safest place. These properties range from money, credit cards, clothing, mobile phones, laptops, jewelry, and other holdings.

There is a specific, albeit optional, cover to protect this personal property. With this optional cover, the insurance company pays compensation if you lose or damage your personal belongings and valuables outside the home. Various insurance companies provide this optional cover when purchasing a regular home insurance policy. It is also presented by some as an insurance feature within the comprehensive home insurance plans.

Keep in mind that this cover is usually subject to a geographical limit, in addition to a maximum number of days that the covered items were outside the home. There is also a maximum value for each covered element. For example, the insurance company may provide coverage for individual items of less than 5,000 $. 
You may have to advertise these valuables at first and purchase additional or separate insurance for them.

Who can benefit from this insurance coverage?

This cover is necessary for both property users and landlords.