For many people, buying a home is probably the biggest investment in their lives, and Homeowners Insurance is essential to protect that wealth. In addition to homeowners, homeowners insurance also includes Renter's Insurance to protect your home property for renters.

Although homeowners are not required by law to purchase homeowners insurance in the United States, if you are buying a home through a loan, banks usually force borrowers to purchase homeowners insurance to protect the home from depreciation due to fire or other accidental damage.

Basic claim items for homeowners insurance

• A typical Single Family House homeowner's insurance policy will cover the following six areas of basic claims.
• Dwelling protection: covers damage to the main building and attached outbuildings (e.g. attached garages), usually with more detailed provisions about what damage is covered and what is not covered.
• Other structures protection: as above, but protected for other freestanding buildings separate from the main building, such as freestanding garages, tool houses, fences, etc.
• Personal property coverage: Insurance coverage for theft and damage to personal property that requires repair or replacement, generally including furniture, appliances, clothing, jewelry and so on, but if there are some valuable items such as jewelry, collectibles and so on, you need to purchase additional insurance.
• Additional living expenses coverage: Also called "loss of use coverage", it covers additional expenses such as temporary room and board for homeowners and their families during periods such as post-disaster reconstruction.
• Liability coverage: liability insurance that protects against lawsuits or damages in the event that someone is injured in an accident on your property, or if you, your family or your pets damage someone else's property.
• Medical payments coverage: In case a guest is injured in their own place medical expenses, or homeowners and family members in other places accidental injuries resulting in medical expenses; this part of the medical insurance is covered regardless of the responsibility of which party, the amount of coverage is usually not large, but can effectively prevent some small injuries into a large liability lawsuit problems.

Homeowners Insurance Additional Claims Program

• Water backup coverage: While basic homeowners insurance will cover water damage due to burst pipes or appliance overflows, if the water damage is caused by a backflow due to the destruction of a sewer, sump pump, or other equipment that is not part of the plumbing system, then this additional backflow coverage is required.
• Scheduled personal property coverage: Specified personal property coverage, generally if the original personal property coverage of homeowners insurance is not high enough, or if there is a price limit, you can buy this program to specifically cover some higher value personal property such as jewelry, art collections, etc., which need to be professionally valued.
• Extended dwelling coverage: Many insurance companies will also have additional home building coverage options, sometimes due to various circumstances the cost of construction may increase, if your original coverage is not enough, this additional coverage (usually exceeds the original coverage 20%~25%) can fill the difference so you do not have to pay extra.
• Business property coverage: If you are doing a home business, you will need to purchase additional business property insurance to keep some business related products in your home.
• Ordinance or law coverage: building or renovation must comply with building codes, some old houses may not meet the current requirements of the structure, when the damage and reconstruction of the additional money "upgrade", this provision can be reimbursed according to the code requirements This provision can reimburse the additional cost of upgrading as required by code.
• Identity theft coverage: protects against property damage due to identity theft issues, but in general, many banks or credit card companies have fraud exclusion protection themselves if you are careful to protect your credit and report identity theft issues promptly.

Types of Homeowners Insurance

• HO-1 (Basic Coverage): Basic Form, which covers claims due to Fire or Smoke, Lightning, Windstorms and Hail, Explosions, Riots and Civil Commotion), Damage from Aircraft, Damage from Vehicles, Volcanic Eruption, Vandalism, Theft/Malicious Theft/Malicious Mischief are ten kinds of external damage to the house. Among them, the home value is covered at replacement cost value and personal property is covered at actual cash value, but HO-1 generally does not support ALE, personal liability and medical insurance. This type of homeowners insurance is generally used differently, and also, many home loan companies will not necessarily lend you money to buy a home if you plan to use the HO-1.
• HO-2 (Extended Coverage): Broad Form, based on HO-1, adds Sudden and Accidental Damage from Artificially Generated Electrical Current, Weight of Ice, Snow or Sleet, Freezing of Household Systems, such as AC or Heating, Accidental Damage from Water or Steam Overflow, and Home Damage from Air Conditioning Systems, such as AC or Heating. Weight of Ice, Snow or Sleet), Freezing of Household Systems, such as AC or Heating, Accidental Discharge or Overflow of Water or Steam), Sudden and Accidental Tearing Apart, Burning, or Bulging of Pipes and Other Household Systems, and Falling Objects ( Falling Objects) are six types of damage to the home, where the insured home is covered at replacement cost, personal property is covered at actual cash value, and some insurance companies offer ALE, personal liability, and medical coverage under HO-2.
• HO-3 (All Risks): Special Form is a policy that provides coverage for all damages to the home except those specifically listed in the policy. The HO-3 insurance category, which also includes ALE, personal liability and medical insurance, is the type of homeowners insurance most clients choose today. According to data published by the National Association of Insurance Commissions, HO-3 accounts for approximately $80% of homeowners insurance.
• HO-4 (Renters Insurance): Renter's Insurance is a type of insurance designed specifically for renters that covers damage to personal property in the event of damage to the rented home, room and board in the event of temporary housing, and liability costs that may arise, such as legal fees. The coverage includes 16 risk scenarios in HO-1 and HO-2.
• HO-5 (Comprehensive Insurance): This is the best and most comprehensive type of homeowner's insurance, covering damage to the home and personal property from all risks other than those mentioned in the insurance regulations. HO-5 is the second most popular type of homeowner's insurance in the market today because of the high cost of the policy and the strict review criteria.
• HO-6 (Condo Insurance): Condo Insurance is an insurance policy for those who rent a unit in a condominium building, which covers the interior of the condominium, personal property, and personal liability. Before purchasing HO-6, the insured needs to understand the HOA insurance coverage of the condominium and the fees he/she will have to pay after moving in to determine the actual amount of HO-6 insurance he/she will have to pay.
• HO-7 (Mobile Home Insurance): Similar to HO-3, but for mobile homes and not for fixed homes. Types of mobile homes include but are not limited to: RVs, motorhomes, fifth wheel RVs, single width mobile homes, double width mobile homes, modular homes, and park model homes.
• HO-8 (Older Home Insurance): Older Home Insurance is a type of insurance designed for homes that have been severely deteriorated, with the same coverage as HO-1 and the actual cash value of the home.