Property insurance protects the items you have while accident insurance protects you when someone is suing you.
Both are often referred to collectively as property and accident insurance because the items you have have the potential to harm others that cause them to sue you.
In this section we will discuss the types of property and accident insurance: car, home, tenant and protection insurance.
Almost every country requires drivers to have at least some car insurance. Even if that is not required, you will definitely need car insurance, because the loss from a car accident is quite large.
If you hit someone’s car, do you have the money to pay for the repair? The average car usage costs more than $18,000 in 2015, based on Emunds research.
What about $50,000 to cover medical bills and loss of work time? Not only are you required to buy car insurance, but you are also required to buy more than the minimum amount of required insurance.
Insurance covers damage caused by vehicles and property in accidents, as well as injuries suffered by others. Insurance also covers car damage caused by storms and collisions with animals.
Just like other insurance, property insurance and accidents have a reduction. Reduction is the amount you will pay when submitting an insurance claim if the insurance company agrees and is willing to pay compensation.
If you are required to pay a $250 deduction and an approved submission of $2000, the insurance company will compensate you for $1,750.
Besides the type, amount of coverage and reduction you choose, car insurance is also determined by driving records, annual distance, residence, age, gender, type of car you drive and your credit score.
The better the driving record, the better your driving experience, and the better the ranking you get.
On the other hand, driving a car is less safe, the more expensive the price of the car or the more famous among thieves, the greater the cost of insurance.
If you experience a car accident, you can use an insurance company application on a smartphone.
The application can guide you to know what to do next, such as taking a photo of an accident, recording the accident and submitting an insurance claim.
The insurance application also makes it easier for you to withdraw proof of insurance, check claims, send messages to agents, and contact roadside assistance.
As we discussed earlier, mortgage lenders require borrowers to have enough home insurance to fully cover the cost of housing changes.
Like car insurance, you definitely need home ownership insurance even though it is not required because of the potential losses that you seem incapable of taking.
For homes, this insurance can reach hundreds of thousands of dollars (or millions for certain homes). If you make major improvements to your home that can significantly increase your house prices, you can increase your home insurance coverage so you can rebuild your home in a new form if it is totally damaged.
Home ownership insurance also covers items in the house as well as items carried on the go or items in the car.
Home insurance comes as a standard contract that depends on what type of coverage you want. Each contract is called a form, and there are 8 parts of the form, starting from the numbers HO-1 to HO-8. HO-1 is the easiest and covers the damage of 10 things, which are called insurance companies as “dangerous things”.
These are fire or smoke, explosions, lightning strikes, hail and hurricanes, theft, destruction, vehicle damage, aircraft damage, riots, commotion, and volcanic eruptions.
To get more coverage, you can choose HO-2 or “general form” coverage, which insures anything in HO-1 plus damage caused by falling objects, such as ice packs, snow, or hail, frozen home systems, damage accidental, cracking, burning, or bulging pipes and other household systems, accidentally releasing water or steam systems and accidental damage to general electronic goods.
Better yet, the HO-3 form, this is the most common type, which bears whatever may happen in your home except for special hazards that are excluded (there are many exceptions, which we will discuss shortly).
HO-4 is for tenants, and HO-5 offers the most exclusive house coverage of all forms. HO-6 offers condominium units, while HO-7 bears housing assistance and HO-8 bears old houses that have special insurance requirements.
The old house is considered a historical place, this house usually has special repairs to treat its appearance and beauty. Samples for insurance are available on the insurance information agency website.
Insurance policies do not cover certain damage. Examples of the most popular forms are HO-3 which does not include:
- Loss due to regulations or law, for example, local regulations require you to repair property at a more expensive cost than usual.
- Earth’s movements, such as earthquakes, landslides and sinkholes. (You can buy it, even though you live in a high-risk place like California)
- Water damage such as flooding and sewer overflow. You can buy a separate flood insurance policy, and your mortgage lender will require you to buy it if your house is located in a high-risk area affected by flooding. You can also buy this insurance even though your lender does not require it.
- Electricity problems: Not including certain losses due to electricity company problems.
- Negligence: If you do not intend to safeguard and protect property while experiencing losses and afterwards, the insurance company will not want to bear the loss. In other words, make sure you contact the fire department if your house is on fire.
- War: If your house is damaged by war or confiscated for military purposes, it’s a pity you are out of luck, the insurance company doesn’t want to bear it.
- Nuclear Hazards: If there is a nuclear attack, radiation or radioactive contamination damages your home, your insurance company will not want to provide compensation.
- Deliberate losses are not included: So if you want to renovate the kitchen, don’t start by lighting a fire and then claim insurance. That would be insurance fraud.
- Government policy: If the government seizes, seizes or destroys your home, the insurance will not want to bear it.
In addition, homes in hurricane or tornado-prone areas must pay additional reduction in storms or hurricanes or buy a rider or buy a special policy to protect against damage caused by the storm.
Reducing home ownership insurance is like reducing car insurance. Reduction is the amount you will pay when you submit a claim and the insurance company justifies and agrees to pay compensation.
If you have a $2000 reduction and submit an agreed claim of $10,000, the insurance company will provide compensation of $8,000. Home reduction is sometimes a percentage, like 0.5% of the value of your home, which will generate $1,000 in a house worth $200,000.
Tenant insurance covers your personal property in the event of loss, theft or damage while in an apartment, multi-storey house or condo that you rent.
Like home ownership insurance, this insurance also covers items that you carry while traveling or items that are in the car. In addition, this insurance offers personal responsibility to protect you if someone is injured while visiting you.
Many hosts require proof of tenant insurance as a condition that you deserve to be able to rent a house from them (sometimes this requirement decreases from the insurance itself, and sometimes this requirement is the host’s choice).
Host insurance covers the structure and land of the property you rent. HO-4 form describes 16 dangers of tenant policy coverage.
Of the two types of insurance, namely home ownership insurance and tenant insurance, you must make a video or photo of your house and belongings to help support a claim.
Free agency insurance information application has been provided to help you make complete and organized item data in the room.
Umbrella insurance offers additional protection obligations outside of car insurance, home ownership or offered by insurance tenants. This insurance protects you when someone sues you to pay some money and if he wins you will receive a large amount of losses.
If you have a lot of assets or big income per year – lawsuits not only endanger the assets you have right now but also your future salary – umbrella insurance can be the right choice for problems like this.
This policy itself tends to be inexpensive for the amount of coverage offered, but you must increase the basic policy to get maximum coverage, which will cost more.
Umbrella insurance also offers the legal defense you need in events such as lawsuits and protects you against certain obligations related to household assistance.