More expensive than real estate insurance in the United States only auto insurance. On the other hand, in their conditions, this is a necessity, because every now and then some emergency and force majeure occurs in the country, which can completely deprive you of your home.
Hurricanes, tornadoes – for the average US resident, this is not a terrible word from the news, but a real problem that he risks facing. We are not yet talking about a banal life, which can also cause a fire or other disaster. Therefore, insurance is popular here, in demand and bought very often, despite their cost.
In addition, it is important to take into account that almost the entire Western world lives on credit, and US residents not only keep up with their neighbors, but almost top the list of the most heavily credited countries. And houses and apartments here are most often bought in installments, which in the end can result not only in the loss of housing, but also in huge debts to the bank for what you no longer have.
What are the policies?
In general, as many as seven types of policies are applied throughout the country, which insure different risks. In fact, these are constructs from levels of protection – you can assemble your own system of protection against different risks by combining different types of policies. Also, a mandatory requirement of insurers here is a deductible in the amount of 250, 500 or 1000 dollars. You need to choose it, taking into account your capabilities and the degree of risk coverage that you want to receive.
On the one hand, the minus of the deductible is that this is the amount that you will have to pay yourself. On the other hand, there is a plus – it cannot be higher than the limit, and the insurance can cover huge damage that is not comparable in cost to $ 1000 or even close. So it’s really worth it.
By the way, jewelry and other valuable property can be insured in the USA along the way.
Types of major policies in the USA
- HO-1 – designed for homeowners and covers 11 risks at once, including fires, theft, damage, vandalism, riots, explosions, civil unrest, lightning strikes, volcanic eruptions, etc.
- HO-2 is the first option + 6 additional risks.
- HO-3 – the maximum level of protection, including the previous two points and any others, except for war, nuclear explosions, floods and earthquakes.
- HO-4 – for tenants, they provide protection as in the second level, but only for his personal property, and not for a house or apartment.
- HO-5 – fully protects all personal property and buildings.
- HO-6 is an analogue of the second type of policy for condominiums.
- HO-7 is an analogue of the first option for buildings that are of historical or cultural, architectural value.