Homeowners and Renters Insurance
Homeowners and renters insurance guard your home and private property against loss or damage and also insures you in case somebody gets hurt while on your property. You might already have insurance on your home if you’ve a mortgage on the home since most lenders make insurance a part of the loan.
Renters insurance, and tenant insurance, offers renters coverage much like homeowners insurance. In case you’re a renter, don’t think your landlord has insurance on your belongings; buy a standalone policy.
What Can Homeowners or Renters Insurance Cover?
Homeowners or renters insurance could pay claims for:
Damages to your house, garage, and outbuildings
Loss of furniture along with other private property because of theft or damage.
Additional living expenses in case you rent short-term quarters while your home is being repaired
Homeowners or renters insurance can also:
Include responsibility for physical injury and property damage you cause to others through negligence.
Include liability for accidents occurring in and around your home.
Pay for injuries happening in and around your house to anyone besides you or your family members.
Offer coverage limited for cash, jewelry, gold, and valuable items.
Cover personal property in storage.
Keep these points in mind when looking for homeowners insurance:
Insure your house, not the land under it. In case you do not subtract the land value when deciding how much homeowner’s insurance to purchase, you will pay a lot more than you need to.
Purchase adequate coverage to replace what’s insured. “Replacement Cost Coverage” provides you with the cash to rebuild the house and its contents. An “Actual Cash Value” policy is less expensive. It pays the difference between your property’s worth at time of loss minus the depreciation for wear and age.
Ask about specific coverage you may need. You might need to pay extra for computer systems, stamp collections, musical instruments, antiques, art, jewelry, cameras, and so on.
Earthquake damage and flood aren’t covered by a common homeowners policy. The price associated with a separate earthquake policy will depend on the chance of earthquakes in the area. Homeowners that are now living in areas vulnerable to flooding must use the National Flood Insurance Program (NFIP).
In case you’re a renter, don’t think your landlord has insurance on your belongings. Buy a standalone policy for renters.
For help in determining just how much insurance coverage to purchase, contact your state insurance regulator.