Tips to Get the Best Deals on Home Insurance

Such insurance usually provide protection against a wide variety of losses or damages that might occur to one’s residential unit or dwelling house and includes damage of fitments and furniture installed in the home, as well as accidental damages that might occur due to act of fire, flood or any other natural calamity.The pre-condition of a House Owner’s Insurance to be legally enforceable is that any one or more of the named occupants (insured) actually should occupy the house for residential purposes only.Home Insurance Policy in the United States is very clearly defined and laid out by Insurance Services Office, which is otherwise known as the ISO and was set up in the year 1971, in the city of New Jersey.Broadly, the ISO has categorized all policies to be commercially sold in the United States into six different categories and any individual who intends to purchase a Home Insurance product in United States may do so, after giving a careful consideration to these standards.These six standards are:1) Basic Policy, 2) Extended Policy, 3) All Risk Policy, 4) Renter’s Insurance Policy, 5) Condominium Insurance Policy and 6) Insurance Policy for Old (or pre-owned) Houses.Basic Insurance Policy, as the name suggests provide limited protection coverage against 11 different risks or possibilities. The US Insurance Laws require that all these risks should be clearly documented in the Insurance Policy offer document.Extended Policy essentially is the same as Basic Home Insurance Policy, only difference is it provides additional protection against 6 more categories of risk which the Basic Policy does not cover.The All Risk Policy is another extension and practically covers against all possible categories of risks which a residential home can be usually having. Notable risks which are not covered by this category are damage and/or destruction caused by earthquakes and/or floods.The Renter’s Insurance category essentially is somewhat similar to the Extended Home Insurance Policy in terms of risk coverage, but the benefit of protection is available to tenants. This category also provides insurance protection to personal property.The Condominium Policy as the name suggests is meant for house owner’s occupying dwelling units (residential flats or penthouses) in condominiums. The definition of a condominium, for the purpose of Home Insurance, again, is elaborated by the ISO. By definition, it means a group housing society or residential complex having a common outer periphery and can be demarcated as a separate group of houses or flats from the main city, town or village where/within which, the condominium is located. The extent of risk coverage under this category is more or less the same as Extended Home Insurance Policy.The sixth and last category of Home Insurance that can be purchased in US is the Older Home Insurance Policy. This category is intended to provide protection to pre-occupied and/or pre-owned houses which may or may not be insured earlier and is the subject matter of sale or property transfer from the earlier owner to current owner. The extent of risk coverage for this category of Home Insurance product is again explicitly laid down by the Insurance Services Office.Apart from giving careful consideration to the above mentioned six standards, there are few general parameters which also need to be weighed in, before an individual settles down for purchasing a home insurance product in the United States.Amount of paperwork and other formalities This is another important parameter which needs to be given adequate consideration while finalizing a home insurance plan. Insurance companies which involve substantial amount of paperwork and a complicated process of signing up should be preferably avoided.List of Exclusions The list of exclusions should be strictly in accordance with the guidelines issued by ISO and should not contain any between-the-line clause, or additional exclusion not explicitly laid down by the ISO.To conclude, these are the brief guidelines which an individual home owner in United States should carefully consider, before he/she finalizes on buying a home insurance product.