Differences Between Home and Renters Insurance
Home and rental insurance are essential ways for people to keep their homes protected. These two types of policies are not the same. If you have a rental insurance policy and move into a property you own, you will need to switch to homeowner’s insurance. Likewise, if you have homeowner’s insurance and become a renter, you’ll want to switch to avoid paying for coverage you don’t need. Read on to learn about the differences between these two types of policies.
Overview of Home Insurance
Home insurance is meant to cover a property that an individual owns. It protects the physical structure of the home and personal belongings within the home. It can also include liability coverage, which covers the insured if there are any accidents on the property. Homeowners insurance tends to be far more expensive than renter’s insurance due to the range of areas it covers.
Overview of Renters Insurance
The main difference between renters insurance and homeowners insurance is that renters insurance does not cover the property. Because it’s not required in most places, many renters opt out of renters insurance. However, it can be a wise investment if you want to protect your personal belongings or be covered in the event of an accident on your property.
Benefits and Limitations of Home Insurance
Home insurance offers extensive coverage for both property and personal belongings. The liability coverage can extend beyond the home, depending on the event that takes place. Homeowners insurance can potentially cover a home replacement. The main limitations are the higher cost, one that seems to keep on rising in recent years, and the fact that you need to be careful reading your policy to see what’s covered. In most places, homeowners insurance is a requirement for owning a home.
Benefits and Limitations of Renters Insurance
Renters insurance offers affordable coverage for personal belongings and liability. It can also cover renters if items are stolen from their car while parked at the rental property. However, with the affordable pricing come limitations. There is very little coverage for the physical structure of the rental property, as that should be covered by the landlord’s property insurance. There are also limitations to the liability coverage, which is more comprehensive for homeowners. Rental insurance often is not required.
When deciding whether to rent or own a home, insurance may be a factor. If you’re a homeowner or planning to be one, you’ll want to make sure you’re covered. Find home insurance coverage options from over 50 top-rated carriers today by using Nsure.