When people shop for home insurance, they are actually seeking not just one type of coverage but possibly several different varieties. Homeowners insurance, renters insurance, and condo insurance are all typically included within the category of home insurance. Whether you own the property that you live on or whether you are renting it short-term, you need to have insurance coverage to guard against disasters and losses.
Homeowners, Condo, & Renters Policy Types: The Differences
A homeowners Policy is for people who own their own homes. This type of policy will cover the home its self, detached structures such as a shed or fence, the contents of your home, as well as liability losses such as slipping on ice, as well as loss of use for you to pay to live somewhere else while your home is being rebuilt. It covers the majority of natural disasters (certain disaster like earthquakes may be excluded but you may add extra coverage for that specific loss) and will allow you to replace or rebuild damaged property.
With a renter’s policy, the coverage includes the inner contents of the home, apartment, or room that you are renting. This is coverage for break-ins, natural disasters, fires, and other circumstances that are beyond your control. Even though your landlord will have a homeowners policy on the place you are living, it does not cover your own personal items as a renter, which is why renters insurance is essential. Renters policies also include liability coverage.
You may be very surprised to see the range of prices you’ll get in home insurance quotes. You can sometimes save hundreds of dollars, or even more, simply by choosing one company over another. However, you must get quotes only from reliable top carriers. Your local independent agent is the best resource for this since they can accumulate multiple quotes from the top carriers for you online. Your independent agency will give you the power to compare all the best policy options conveniently at home!
A Landlord has different risks than a traditional home owner. For instance they usually do not have as many contents in the home. The home is usually rented out to others which has its own liability risks that come with it.
Not every home policy is made equal. There are many add ons that can change the coverage and premium of a home policy. Ordinance or Law which covers your home after a claim if something needs to be rebuilt up to current code. Water Backup & Sump Pump Overflow coverage that covers if the sewer system backs up into your home or if a sump pump fails to keep water out of your home. Service Line is a coverage that protects your service lines under ground if they need to be replaced. Equipment Breakdown covers your home equipment like your furnace or AC unit in the event of a power surge. Earthquake is excluded on all home policies and must be added back on for coverage but not all policies are the same, deductibles vary from 2.5%-25% on earthquake policies. Scheduled Property is for your higher valued property such as jewelry or art. Flood is also excluded on all home policies and most policies don’t allow you to add it back on, there are other ways to get the coverage you need though.