Home is where the heart is. When shopping for Home Owner Insurance, it is important to understand what you are looking to protect.
There are distinct differences between Homeowners insurance (Dwelling inclusive), Renters Insurance, and Condo insurance.
While they are all considered within the same category (Home insurance), they all have different coverage depending on the property type being covered.
Whether you own the property that you live in or whether you are renting it short term, you need to have insurance coverage to protect against insurable losses and disasters where applicable.
Typically a homeowner’s policy will cover owners who own their home outright or where the home is financed with a mortgage or where other liens may be present.
This type of policy will cover both the outside of the home (structure) and the insurable contents of your home where applicable.
A Homeowners policy may cover some common perils (Fire and Smoke, lightning, Windstorm & Hail, Explosion, Vandalism and malicious mischief, Damage from an Aircraft, car or vehicle, Theft, Falling Objects, Weight of Ice/snow/sleet, and Water Damage) with exception of certain disasters like earthquakes, flood and any others explicitly excluded within a policy.
Where a hazard is excluded you may be able to add some coverage via a rider or other policy addition for that specific risk.
Most homeowner policies will allow for the repair or reconstruction of the home if damaged or destroyed subject to any deductibles and other policy limitations.
If your home is broken into by a thief and items are stolen your insurance may help replace stolen items and pay for any damage in terms of vandalism that the thief did.
Typically a renter’s policy will only cover the contents of the rental unit whether or not it is a home/condo, apartment, or room.
This is coverage for any break-ins, natural disasters, fires, and other circumstances that are beyond your control that result in the loss of your personal property which is within the rental unit and other covered locations.
While most landlords and real estate management companies may cover the property with insurance (typically a dwelling only policy unless the property is owner-occupied and a multi-family dwelling), it does not cover your own personal items as a renter, which is why renters insurance is essential.
The pricing differs greatly for renters, condo owners, and homeowners insurance due to the different risks of each.
You may be able to save hundreds of dollars by changing coverage options or by selecting a different insurer.
It is important that you completely review the insurer and their ability to pay claims in addition to your policy documents.
An independent agent will be able to get you the best choice from several insurance companies and can be your best resource when reviewing your unique circumstances.