Home Insurance Articles
Differences In Renters And Homeowners Insurance Agreements
2010-07-28
Whether you have just purchased a home or whether you have owned your home for some time and are merely looking for a new policy, you may be worried or confused about obtaining homeowners insurance. Or perhaps you have just rented an apartment or house and are wondering if you need renters insurance. The short answer is that whether you own your home or are renting an apartment or home, you need insurance. Fortunately, home insurance quotes are available for both owners and renters.
In essence, a homeowners insurance policy is meant to be property insurance. There are several basic types, covering any number of types of property. Traditionally, homeowners insurance covers the cost of structural damage to the house, as well as possessions within the house if the homeowner chooses that as part of the insurance coverage. Homeowners should be careful to know exactly what kinds of perils are covered in their policy (such as fire, plumbing and electrical issues). Many policies have what are called exclusions, or perils that are not covered under the policy. These perils are usually related to flood damage, earthquakes or nuclear explosions. Homeowners insurance may also cover personal liability if someone who does not live on the property should be injured on the property. This kind of homeowners insurance covers the cost of any possible liability, such as medical bills. Again, liability coverage is a special kind of policy, and most homeowners need to ask for it specifically if they want to include it as part of their homeowners insurance. Some policies also cover the expenses of a family who has to relocate during a long and complicated repair or renovation that is taking place due to something covered in the policy.
Renters insurance is slightly different from homeowners insurance. Because the renter does not own the actual building or property, they are not responsible for the same kind of property and building damage that a homeowner is. The owner of the building is required to have that type of coverage. Renters insurance does, however, cover loss to the renter's personal property if it is damaged or destroyed by any of the usual perils covered in a homeowners insurance policy. Some renters insurance also covers liability, but someone looking for a policy should ask about this upfront. Tenants usually receive personal property but not liability coverage under renters insurance.
Homeowners and renters have many policy options that are available in most markets, making it easy to ask an insurer about a policy for your home or rental. Whether looking for personal property, liability or structural coverage, or a combination of all three, there are many home insurance quotes available.