Homeowners insurance is the second largest line of personal insurance for property-liability insurers, behind auto insurance. Most insurers writing homeowners policies are multi line insurers who also sell personal auto and life insurance. Over 500 companies sell homeowners insurance across the United States, and the market shares of the leading insurers within each state generally are not large. The largest five writers of homeowners insurance in the United States (with 2000 national market shares in parentheses) were State Farm ,Allstate, Zurich Insurance Group, Natiowide Insurance Group, Travelers Group. The top four insurers are direct writers.
Types of Policies;
Homeowners policies are multiple line, multiple peril policies.They provide first-party property, third party liability and third party medical expense. Property is covered from losses due to multiple perils. In some cases, the policy lists the perils that are covered. In other cases, the policy covers all perils except those specifically excluded excluded (known as an open peril policy or all risk policy).
Homeowners policies are standardized to a large extent. That is, the policy structure and language, as well as the types of coverage, the exclusions and so on generally are similar across insurers. Most insurers sell policies that are very similar if not identical to the standard policy forms that have been developed by the Insurance Services Office, a private organization that provides rating and policy form services to the Insurance industry, There are seven basic types of policy forms.
Description for Major Coverages;
Policies for homeowners typically provide six coverages. These coverages, which are listed are labeled. The first three coverages provide reimbursement for property damage, and the other three provide reimbursement for loss of use, liability losses and medical expenses respectively. Nest to the the name of each type of coverage is a brief description of how the amount of coverage is determined under the H03 form. Homeowner’s policies also provide a number of other coverages, such as coverage for debris removal and fire department service charges.
The amount of dwelling coverage chosen by policyholder determines the amount of coverage for other structures, personal property and additional dwelling coverage, then the H03 policy provides $10000 for other structures.
Homeowners insurance dwelling coverage covers the policyholder’s main residence and attached structures. The property insured by a homeowner’s policy must be primarily used as a place of residence and not for business purposes. While limited amounts of business activity can be conducted at a residence without jeopardizing coverage under a homeowners policy, if a person’s main residence also is where a significant amount of business is transacted a separate business property policy may be needed.
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