Homeowners Insurance Laws

To make your dreams come true might take a lifetime. Everyone dreams of owning a house someday. And this does come true. So what’s the next step…to save your dream house forever! Or can you imagine leaving your house in the hands of burglars to steal it away or watch the remains of your house after a fire breaks out in it? To help you protect your home from such an extensive damage, insurance companies have come up with a homeowner’s insurance program.

The main aim of an homeowner’s insurance (HOI) is to help you cover up for the losses and damage to the property in the event of a mishap. You pay an affordable rate for a coverage under this policy. A homeowner’s insurance protects not only the bricks of your house but most of the personal belongings like furniture, fixtures and others. Expensive paintings, work of art or jewelry or cash can be claimed only up to a certain limit though.

Every single item within the fence is covered. Surprisingly, homeowners insurance takes responsibilities for accidental death within the premises too. or for. E.g. claims can be filed if the mailbox breaks suddenly and hurts your foot, you become eligible to claim the medical expenses from the company to a certain limit.

Homeowner’s insurance can be mainly classified into two

• Fixed term Homeowner’s Insurance- this is for a fixed period of time, term mutually agreed upon by the insurance provider and the insured.

• Perpetual Homeowner’s Insurance- this unlike for a fixed term can be starched, however residents of certain areas can be eligible for this policy.

There are certain ground rules if one has to avail this policy. The laws of this insurance policy gets everyone to a common agreeable ground, so a fair and just treatment is meted to all takers. That’s where the governing bodies come into force. For insurance though there is not one particular centralized body to enact the laws, but each individual state has its own regulatory body. These bodies implement “unfair trade practices” and binds the policy provider and the policy holder by certain obligations. Within states it could be an “ insurance department”, or an “insurance bureau” lead by a “superintendent of insurance” . They look after the law aspect, mostly the governor of the states appoints them. The National Association of Insurance Commissioners ( NAIC) ,which includes the state governing bodies govern the regulatory insurance laws in the whole. Insurance laws mainly cover segments like fire insurance, general insurance law, exclusions of the law, employee benefits, insurance claims,lawsuits and others.

After understanding the laws that govern insurance it becomes therefore necessary to ensure that you choose the right home insurance policy for you and make sure that even the minute points of the insurance laws are put into force. So that all are treated on a fair ground policy.

by Sandra Stammberger