After buying a house in the United States, do you know how to buy house insurance?

After purchasing a property in the United States, purchasing loan-841">home insurance is essential. A good house insurance can provide homeowners with financial compensation when their house encounters an accident or sudden disaster. In particular, damage caused by natural disasters to residential buildings is common in the United States. Heavy rains, floods, tornadoes, earthquakes, and wildfires may all cause devastating disasters to residential buildings.

Last year’s California wildfires and the early blizzards in the Midwest and Northeast. If homeowners did not purchase housing insurance, they would not be compensated for the damage to their homes when such disasters occur, and all their hard-earned savings would be wiped out.

What is Homeowner Insurance ?

U.S. homeowners insurance mainly provides insurance for individually owned houses, apartments, garages, and the property in these buildings owned by U.S. residents. Home insurance can pay for losses caused by natural disasters (some), theft, and man-made accidents. Most home insurance policies will cover the following four situations:

• The structure of the house itself is damaged (the house itself, fence, garage, driveway, swimming pool, etc. are included in this scope)

• Loss of personal belongings in the house (such as household appliances, furniture in the house, personal collections, etc.)

• Homeowner’s Liability Insurance (for when an accident occurs to the homeowner or a visitor inside or outside the house)

• Additional living expenses (additional living expenses incurred due to the disaster that prevents the owner from using the home and while the home is being repaired)

What does U.S. homeowners insurance not cover?

Earthquake and flood damage are typically not covered by a standard home insurance policy. Most insurance companies will provide separate earthquake insurance or flood insurance, and homeowners can choose and purchase it separately depending on the local natural climate environment. However, in California, the law clearly requires insurance companies to provide earthquake insurance, and the premium depends on the likelihood of an earthquake in the area. 

Routine maintenance damage

It is every homeowner's responsibility to maintain their home, so insurance policies will not cover damage caused by mold or termites or other pests due to lack of maintenance.

Backflow insurance

Backflow insurance is not included in the basic terms of house insurance. Friends who need this should remember to add this provision to their house insurance. For residents close to rivers, installing a backflow valve can not only reduce the chance of encountering such risks, but also significantly reduce your insurance premium for this clause.

What types of home insurance are there?

There are many types of Home Insurance, which are divided into the following categories. Homeowners can choose according to their needs and budget.

HO-1 basic insurance (Basic):

Covers damage to your home due to fire, lightning, smoke, wind, hail, robbery, theft, explosion, broken glass, aircraft or automobiles, riot or commotion, and vandalism. The basic insurance also covers bodily injury, damage to other people's property, legal fees, medical expenses, indoor personal property, and housing expenses after the house is damaged.

HO-2 expanded insurance (Broad):

On the basis of the basic insurance, insurance is added to cover damage caused by electric shock, heavy ice and snow, frozen water pipes, falling objects from the sky, breakage or burnout of water heaters or air conditioning systems, and indoor water leakage.

HO-3 Full Insurance (All Risk):

On the basis of basic insurance and expanded insurance, almost all contents are covered except war, flood, earthquake and subsidence. It also covers accidents caused by guests indoors or outdoors, and accidents caused by passers-by outdoors. After the family dog bites someone, you have to pay for medical expenses and even attorney fees. 

HO-4 Renter's Insurance:

Compensation for personal property in guest rooms of apartment buildings. 

HO-5 comprehensive insurance (Comprehensive):

The coverage of P&I is wider than that of full insurance, and the premium is more expensive. 

HO-6 Condominium Coverage :

Covers a condominium owner’s unit and interior personal property. Damage caused by accidents, fire, theft, or water leakage caused by guests or passers-by indoors or outdoors. Homeowners must read the condominium charter carefully to determine the amount of insurance they must purchase. 

HO-7 Mobile Home Insurance:

For mobile home owners.

HO-8 Older Home Insurance:

The market price of an old house is lower than the rebuilding price. Older home insurance allows homeowners to insure the home at a market price that is lower than the rebuilding price.

Landlord fire insurance (Dwelling Fire):

Applicable to landlords of non-commercial properties. In addition to fire, it also covers damage caused by ice, snow, storms and mold.

Home Owner Insurance or Hazard Insurance mainly protects against damage caused by fire to the house, so some people also call it Fire Insurance. In fact, homeowners insurance also covers many other types of damage to your home or personal property, as well as accidents that occur indoors or outdoors to guests or passers-by.

Is it necessary to buy home insurance when buying a house in the United States?

If you are buying a house with a loan , the lending bank will definitely require the buyer to purchase house insurance before transferring the property, otherwise the loan will not be approved.

If you buy a house in full with cash , although the law does not explicitly require you to buy house insurance, in order to avoid losses caused by accidents in the house, it is recommended that the homeowner also buy house insurance as protection.

The landlord has purchased building insurance, does the tenant still need to purchase insurance?

In most cases, the liability insurance purchased by the landlord is to compensate the tenant for personal injuries that occur outside the house, such as stairs, parking lots, swimming pools and other public places, but is not responsible for property damage inside the house. If a break-in occurs in a rental house, the landlord generally does not need to be held responsible unless the rental house is frequently broken into and the landlord ignores it or does not take any remedial measures.

Tenants can also purchase renter insurance (Renter Insurance) on their own to reduce losses caused by accidents. Tenants insurance generally includes the following items: tenant's personal property, third-party liability insurance (Liability Protection) , third-party medical insurance (Guest Medical Protection), etc.