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Comparing Homeowners Insurance With Renters Insurance

Comparing Homeowners Insurance With Renters Insurance
Isn’t renters insurance exactly the same as homeowners insurance except for that fact it covers an apartment you rent instead of a home you own or have equity in? Well, not really – there are other important differences you should be aware of.
Here are the 4 most important similarities and differences to know about when comparing home insurance to renters insurance:

1. Only Homeowners Insurance Covers The Building
The biggest difference between these two types of policies is that homeowners insurance is meant (primarily) to cover your main dwelling against fires, storm damage, and other covered incidents. It may also cover detached structures like garages, sheds, and fences.

Renters insurance does NOT cover your apartment against possible damage. Your landlord will generally have a home insurance policy to cover the building, and the cost of it is reflected in what tenants pay for rent. So there’s no need to “double up” here.

2. Both Cover Your Residence’s Contents
The main reason to get renters insurance is that it covers your possessions that you keep inside of the apartment you rent. Homeowners insurance also includes this kind of protection because, after all, a large part of your loss in (say) a fire is the loss of your home’s contents and not just of all/part of the building.

There will be an overall limit on property protection, and there will also be set limits for different categories of possessions. Some items might be excluded as well. But you can add riders or raise the limits to customize your policy if you are willing to pay a little higher of a premium.
Note that doing a detailed home inventory and letting your insurer know about it ahead of time will greatly simplify the claims process.

3. Both Include Limited Liability Coverage
Although neither home nor renters insurance is primarily focused on liability coverage, both types of policy include that element. This element is meant to protect you against lawsuits and medical bills in the event a visitor is injured on your premises.

Liability also covers you against accidentally damaging someone else’s property in connection with your home/apartment.

4. Renters Insurance Is Not Usually Required
Most people can’t simply buy a new home outright, and the lender will almost always require you to buy homeowners insurance until you pay off the mortgage. It’s a good idea to continue coverage long after you own your home free and clear, but it won’t be required.

It’s less common for anyone to be required to carry renters insurance in order to be allowed to lease an apartment. But, if you own a pet, your landlord might require it. The reason is NOT that your pet might damage the property – for that would be covered by the landlord’s homeowners insurance, not the renter’s renters insurance.

The reason is that the renters policy would cover you against liability for a dog bite or attack – ensuring the landlord won’t get stuck with the bill.

While there are many other ins and outs to do with property insurance, these are the most salient points of contact and points of difference between homeowners insurance and renters insurance.

For more in-depth information on home/renters insurance or to get a free, no-obligation quote, contact Flagler County (FL) Insurance Agency today! An experienced agent can help you craft a policy that will fit your exact needs and budget.