Homeowners insurance in the USA is the insurance security for all houses that are approved under the insurance company and which serve best in safeguarding the properties of the individuals. just like the name goes, it can also be called home insurance or (HOI) as the case may be. One can also say that it covers losses and damages to an individual’s residence, like furnishings and other assets in the home. Homeowners’ insurance also provides liability coverage against accidents in the home.
Homeowner’s policy is a multiple-line insurance policy, meaning that it includes both property insurance and liability coverage.
This comes of course with an indivisible premium, meaning that a single premium is paid for all risks. This means that it covers both damage to one’s property and liability for any injuries and property damage caused by the owner or members of his/her family.
View on Home insurance for all
Home insurance, also commonly called homeowner‘s insurance is a type of property insurance that covers a private residence that combines various personal insurance protections, which can include losses occurring to one’s home, its contents, loss of use, or loss of other personal possessions of the homeowner.
However, homeowner’s insurance often depends on what it would cost to replace the house and which additional endorsements are attached to the policy.
The insurance policy is a legal contract between the insurance company and the insured(s) and a contract of indemnity and will put the insured back to the state he/she was in prior to the loss.
NOTE: However, dwelling coverage does not cover everything, no matter what your policy limits are, it is a good idea to customize your policy by having additional coverage to suit your specific situation.
Optional Home insurance coverage
Medical payments coverage: May provide payment for a medical expense resulting from an accident on the customer’s property. This coverage is intended for the immediate medical treatment of guests on the customers’ premises, without determining fault.
Ordinance or law insurance: kicks in if you need to rebuild your house to fit current building codes after a covered loss. It can be a smart choice if you have an older home.
Valuables Plus: is a unique Nationwide coverage that provides an extra level of protection for your high-value items such as jewelry, antiques, and fine art in the event of a covered incident.
Flood insurance: Protects your house and belongings from flood-related damages is a separate policy with its own deductible. If you live in a state or area that is prone to flooding, this coverage is a good idea and may even be required depending on your location.
Earthquake insurance: covers your home in the event of damages caused by an earthquake. This policy also has its own deductible.
Water backup of sewer: protects your home in the event of sewer or drain backup, which is an unfortunate but common issue faced by homeowners.
Personal umbrella liability insurance: provides additional coverage for bodily injury, property damage, and personal injury to others beyond the policy limits outlined in your main homeowner’s policy.
Brand New Belongings: This is an optional, add-on endorsement that can provide funds to repair or replace certain belongings in the aftermath of a covered loss, without a deduction for deterioration and depreciation.
Covered perils
Basic “named perils” – this is the least comprehensive of the three coverage options. It provides protection against perils most likely to result in a total loss.
Basic-form covered perils:
- Explosion
- Smoke
- Vandalism
- Fire
- Lightning
- Windstorm or hail
- Aircraft or vehicle collision
- Riot or civil commotion.
Broad-form covered perils:
- Weight of ice and snow
- Freezing of plumbing
- Burglary, break-in damage
- Falling objects (e.g. tree limbs)
- Accidental water damage
- Artificially generated electricity
Special-form excluded perils:
- Power failure
- Neglect
- War
- Ordinance of law
- Earthquake
- Flood
- Nuclear hazard
- Intentional acts
Factors to Consider When Choosing the Best Homeowners Insurance
Factors you should consider when choosing an insurance company:
- Financial Rating: The higher a company’s financial rating, the more likely they are to pay out claims in the future.
- Discounts: Sometimes, a company may seem too expensive, but they offer discounts that make them much more affordable.
- Claims Process: A company that is pleasant to deal with during a claim situation is great, and a company that pays claims on time and in full is even better. Pay close attention to this aspect when researching insurance companies.
- Sufficient Coverage Levels: The most important part of choosing your homeowners insurance is making sure you have enough coverage to protect you in the event of a total loss.
- Cost: Make sure you choose a policy with a premium you can afford to pay each month. It doesn’t matter how good the coverage is if you can’t make the payments.
- Customer Reviews: Customer reviews are the best way to learn about a company’s reputation. If you want to know if a company is pleasant to deal with on the phone or pays out their claims on time, customer feedback can help you find that information.
- Special Circumstances: If you have specific needs such as coverage for natural disasters common in your area or additional coverage for uncommon household features (wheelchair ramps, stair climbers, etc).
The Best home insurance companies
USA
USAA is open only to active military members, veterans, and their families. For those who qualify, USAA provides several standard features like:
- Identity theft coverage ($5,000 limit) in some states to help with expenses if you are the victim of identity fraud.
- Military uniform coverage for those on active duty or deployed, which provides full reimbursement without a deductible if a uniform is damaged or stolen during a covered event.
- Replacement cost coverage, which pays the cost to replace items rather than providing only the depreciated value.
Hippo
Hippo offers policies through its subsidiary Spinnaker Insurance which Hippo acquired in August 2020 and can provide a 60-second “instant quote” for easy comparison.
Hippo’s high-tech focus is evident in some of the extras that come with its policies, such as a smart home monitoring system and virtual connections to home maintenance advisors.
Chubb
Chubb targets owners of expensive homes, tailoring much of its experience toward well-to-do clients. It offers a substantial number of coverages, including atypical ones such as HomeScan, which helps uncover issues with your home that require attention before they can cause damage.
Chubb also offers extended replacement cost for dwelling and replacement value for contents as part of its standard policy, another unusual benefit for consumers.
Travelers
Travelers’ optional Green Home Coverage helps cover extra costs of using environmentally friendly construction materials when rebuilding after a covered claim.
Carrying that theme further, Travelers offers customers a discount if their homes are certified as “green” by the Leadership Energy and Environmental Design.
State Farm
State Farm is rated well with the NAIC, registering fewer consumer complaints with the website offers an intuitive interface and easy access to file claims, get a quote, and access information about your policy.
Meanwhile, State Farm offers several additions to the standard homeowner’s policy. Its “increased dwelling limit” add-on does not cost extra and automatically extends the replacement cost coverage up to 20% as long as the home has been insured up to its estimated replacement cost.
Auto-Owners
Note: Auto-Owners offers an array of homeowners coverage and its Homeowners Plus package bundles together several less-common options, including coverage for property damage caused by appliance leaks and food spoilage from power failures.
Auto-Owners also offers several discounts that many companies do not, particularly for customers who have invested in home upgrades such as a water shut-off system or an automatic backup generator.
NJM
NJM Insurance serves only Connecticut, New Jersey, Ohio, and Pennsylvania, but if you live in those states, you will find a streamlined online experience that allows for easy management of the claims process.
Farmers
With Farmers’ Smart Plan Home policies, you will receive:
- Claim forgiveness, which prevents your premium from increasing after a claim if you have been claim-free with Farmers for five or more continuous years.
- Declining deductibles, which reduces your deductible by $50 each year your policy is in force.
- Cosmetic damage repair, which pays to replace undamaged parts of your home, such as siding or shingles, if needed to match repairs made in a covered claim.
Farmers also offer several uncommon optional coverages such as Eco-Rebuild, which provides up to $25,000 for extra costs to rebuild with green materials after a claim.
Erie Insurance
Erie’s standard homeowner’s policy includes several types of coverage that make Erie stand out, such as coverage for theft or loss of personal belongings.
Guaranteed replacement cost coverage, which is also included in some states, pays the full cost to repair or replace your home if it’s destroyed or damaged.
Country Financial
Country Financial offers coverage that protects against household mishaps such as countertop burns, paint spillage, and power surge damage to appliances.
Customers can get safety-focused discounts for features such as:
- Newer electrical wiring.
- A safe heating source.
In most states, Country Financial offers guaranteed replacement cost coverage that pays the cost of standard new construction materials and labor if you need to rebuild your home, with no limits.
The Hanover
Hanover’s home insurance policies offer many optional extras, some of which are generally not offered by other companies.
For example, let’s say a tree falls on your house and car during a storm. If you hold both a home and auto insurance policy with the Hanover, you will have only one deductible for all of the damage.
Another typical Hanover is siding and/or roof restoration coverage, if you need to repair your roof or siding as part of a covered claim and the right materials aren’t available, the insurer would pay in some cases to replace undamaged areas as well.
The Hartford
The Hartford offers homeowners insurance in partnership with AARP. Although you do not have to be an AARP member to get a quote, you will need to be a member to get a policy in most states.
The Hartford’s standard Home Advantage package includes:
- “New for old” protection that pays to replace your possessions with new items, regardless of the old possessions’ age or condition.
- Reimbursement for replacing locks (after a $100 deductible) if a key is lost or stolen.
- Coverage that helps pay for damages from a libel or slander claim, which standard liability coverage typically does not.
The Hartford offers a disappearing property deductible that reduces your deductible by $50 for every three years you don’t file a claim.