Home Insurance

Your home is one of your greatest investments. So it is important when you are searching the many Illinois home insurance companies for whatever type policy you want, to be armed with the facts and knowledge that will allow you to make an affordable and sound choice.

There are many different types of Illinois home insurance coverage and it is in your best interest to understand what is available and especially to formulate coverage that protects you and your home in the best way possible.

Most consumers don’t think a lot about home insurance. Like other types of insurance, your needs may change from year to year, depending on items you purchase (personal property) or perhaps upgrades and/or additions you may make to your property. These can all add value to your home, but it also means that you might need to increase the amount of coverage you have in case you ever need to file a claim.

This is why it’s important to review your Illinois home insurance policy annually (or more often depending on your circumstances). Many people think of the normal types of coverage for their home insurance- fire, storms, earthquakes, etc. It’s wise to remember that many policies don’t include natural disaster-type coverage. They are considered “extra”, which usually means the specific type of coverage (flood, earthquake, hurricane) has to be added separately and also at an additional cost over the normal policy amount.

You want to make sure you have adequate coverage for theft, also. Most people woefully underestimate the cost of what they would need to fully replace personal property remember you have to think of all possible items- furnishings, clothing, jewelry, electronic equipment. Smoke and water damage from a fire can be almost as devastating as the fire itself, so you need to protect yourself reasonably when choosing your Illinois home insurance coverage.

When you have read the following information and are ready to pick your personal policy, insuranceUSA.com is ready to assist you with quotes from many different sources so that you can choose the plan which is just right for you!

Choosing Your Illinois Home Insurance Policy
Generally, there are two types of Illinois home insurance policy options available. The first is called a monoline policy, which contains just one type of coverage, liability insurance, for instance. The second type of Illinois home insurance policy is called a package policy, and it is made up of several different types of coverage. As a rule, it is more economical to purchase a package Illinois home insurance policy rather than buying several types of separate coverage.

There are seven types of Illinois home insurance policy options available. Each type of Illinois home insurance policy is briefly described below. For more detailed information on each policy and to find out which one best suits your needs, let the agents of InsuranceUSA.com help you out today!

Homeowner’s-1 (HO-1): This is the basic type of Illinois home insurance policy, but one that is not offered by all insurance companies because it is very limited in its coverage. A few of the damage covered by the HO-1 Illinois home insurance policy are fire, lightning, smoke, wind, hail, burglary, theft, vandalism and bodily injury. Carefully check the policy to see exactly what is covered with this type of insurance.

Homeowner’s-2 (HO-2): This Illinois home insurance policy covers everything listed in an HO-1 policy, plus damage from falling objects, the weight of ice and snow, water leaking from a plumbing system, electrical damage to appliances, and damage due to the rupture of water heaters or other heating systems.

Homeowner’s-3 (HO-3): This type of Illinois home insurance policy is also known as the Special Form Policy, and it is the most widely used type of Illinois home insurance policy. Many lending institutions recommend using this standard policy. The policy covers homes for all risks of physical loss, except for those that are specifically excluded in the policy. It is important to understand just what is, and is not, covered under this type of insurance.

Tenant’s/Cooperative Owner’s – (HO-4): This Illinois home insurance policy is designed to protect against damage to the contents of an apartment as well as personal liability for injuries suffered in the apartment.

Homeowner’s-5 (HO-5): The HO-5 Illinois home insurance policy provides the same coverage as the HO-3, plus it covers personal possessions in the event of physical loss, unless specifically excluded in the policy. The extra protection can be added to the HO-3 policy by buying a Special Personal Property policy.

Condominium Unit Owner’s (HO-6): This Illinois home insurance policy is the same as the HO-4, but it is specifically for condominiums.

Homeowner’s-8 (HO-8): This Illinois home insurance policy offers similar coverage to HO-1, but instead of replacement cost coverage, it offers actual cash value coverage. This is generally used in instances where the replacement value of the property is more than the market value, as is often the case with older homes.

How Much Illinois Home Insurance Do you Need?
When you purchase Illinois home insurance, you should inventory your possessions. Make sure you take photographs of your most valuable items such as furniture and appliances; and always hang onto your receipts. Update your inventory at least once-a-year or when you buy something new.

You will also need to know the value of your home and how much it would cost to replace if it is completely destroyed. Most insurance companies will have you obtain a physical inspection to determine your home’s value before they will write a new policy.

Always buy just enough Illinois home insurance to cover your loss but don’t overdo it so you can’t afford the premiums. Be sure to ask you insurer any questions you may have or use InsuranceUSA to research a new policy and request a free quote.

Non-Renewals and Policy Cancellations
An insurance company cannot simply cancel an Illinois home insurance policy and it must remain in effect for the “term period” provided nothing warrants its legal cancellation. Possible reasons for an insurance company discontinuing coverage during the term period include:

  • Non-payment of premiums
  • Felony conviction
  • Modifying a residence so as to make it uninsurable
  • Creating unsafe conditions at the property
  • Committing fraud or otherwise submitting false claims

After the policy term period is over, an insurance company can cancel or not renew a policy for any legal reason. In such an event, adequate written notice must be provided prior to the cancellation or non-renewal.

Purchasing Illinois Home Insurance
The first thing to do when you decide to buy Illinois home insurance is make sure that you are working with a company that is appropriately licensed. To find out if they are licensed to sell Illinois home insurance just ask for a copy of their Illinois license number.

Your next step will be to answer a list of questions that will give the insurer enough information to make sure that you are sold the appropriate Illinois home insurance. It is vital that you answer the questions carefully and don’t leave anything out.

When you are looking around for an insurer make sure that you find out about the level of service that they provide. This is equally as important as the cost. The lowest price isn’t always good value.

Purchasing Illinois Home Insurance via the Internet
Shopping around for good quality Illinois home insurance is very important. You should get a minimum of three quotes. To gather the quotes you can use either the phone or the internet. The internet is a fast and easy way to do your home insurance research and to find the best deals without having to leave your house. The internet has become a key part of the home insurance sector. Insurance agents provide quotes over a growing number of comparison websites. All you need to do is fill in the online questionnaires and a quote will be returned to you at the click of a button. InsuranceUSA.com is a great place to start your search.

Remember that price is not the only thing to keep in mind when purchasing Illinois home insurance. Companies that answer questions and deal with claims quickly and efficiently will be your best choice when buying Illinois home insurance.