Thursday, September 15, 2011

Home insurance in USA | Why one need to take home insurance in USA?

 Why one need to take home insurance in USA?:

Homeowners insurance is an important purchase for many people.
There are two major reasons to buy homeowners insurance.

1. To protect your assets Homeowners insurance covers both your property and your personal legal responsibility (or liability) for injuries to others or their property while they’re on your property.

2. To satisfy your mortgage lender Most mortgage lenders require you to have insurance as long as you have a mortgage and to list them as the mortgagee on the policy. If you let your insurance lapse, your mortgage
lender will likely have your home insured. The premium may be much higher (and the coverage much less) than a policy you would buy on your own. The lender can require you to pay this higher premium until you get your own homeowners insurance again.

What the policy covers:

A homeowners policy usually covers:

• Your house and other buildings on your property
• Your personal property in your home or on your property
• Your personal liability your home is being repaired
• Medical payments for others accidentally hurt on your property
• Additional living expenses if you must rent a place to live while your home is being repaired.

What the policy doesn't cover?

A homeowners policy usually doesn’t cover:
• Flood
• Earthquake, landslide, or mudslide
• Sewer backup
• Identity theft

Your homeowners policy may not cover claims related to:
• Dog bites
• Swimming pools or trampolines
• Operating a business from your home.