Renters and Homeowners Insurance

While accidents may not happen very often, they are sometimes inevitable.

Not having any protection against certain events or accidents that may happen in the home can be costly should anything happen. When moving into a new rental unit or buying a new home, purchasing an insurance policy is the best way to protect yourself and your investment.

In some instances, you may be required by your landlord or mortgage lender to carry insurance. On other occasions, it may not be a priority as part of the housing agreement. However, having a renters or homeowners insurance policy is a cheap and effective way to keep yourself legally and financially protected against any occurrence that might put you at a disadvantage. Most policies offer coverage for common mishaps, like a home maintenance upgrade, to unlikely disasters, such as flooding or other damages. No matter what kind of home you are living in, buying the right insurance policy can save you time, money and grief should anything happen while you live in your home.

Renters Insurance

Renting an apartment or a house can be a huge liability. Although it is generally cheaper than buying a home, renting means you are responsible for any major damages to the property should any occur. Even in the event of an emergency, which you are not liable for, you may incur expenses you did not plan for. Having a renter’s insurance policy is the best way to protect yourself from any legal and financial obligations that may arise while renting your home.

Also referred to as tenant insurance, renters insurance covers a renter’s personal belongings as well as the property being rented. Every policy offers different amounts of coverage, so some belongings, such as jewelry or expensive electronics, may not be covered if lost or stolen. Certain kinds of damages may also not be covered, such as any damages purposefully made by the policyholder. Any items or damages that are not covered by insurance will be stated in the policy.

Renter’s insurance typically does not cost much to purchase, averaging at about $200 a year for a policy. However, it is possible to lower the price of a renter’s insurance policy if it does not fit into your budget. Choosing a plan with a high deductible is likely to offer you savings on premium payments. You can also opt for a policy with fewer coverage options to save money on the policy. Some insurance policies also offer discounts for certain home and safety improvements, such as installing a security system or a fire detector. If these improvements already exist in your rental unit, you may be able to receive a discount on your renter’s insurance policy without having to make any changes yourself.

Condominium Unit Owners Insurance

Condominium or condo owners typically would not think to purchase insurance coverage for their property unless required by building management or the Home Owner’s Association. Most condominium complexes have their own property insurance but these policies typically do not cover damages in individual units, as they only offer coverage for shared spaces. Unit owners are typically responsible for everything within their own unit unless damages within the unit are caused by something outside of it.

Unlike most apartments, individuals can own condo units. The unit owner is free to make certain changes to the inside of the unit, such as purchase different appliances, remodel the kitchen and bathrooms and install fixtures. However, this also means the unit owner is responsible for all of his or her possessions, including the actual unit. Should a disaster, damages or theft occur, the unit owner would likely have to pay completely out of pocket to repair or replace everything if he or she does not have unit owners insurance. As a condo owner, having an insurance policy is the safest way to keep from any financial hardship caused by events resulting in loss. Owners will need to determine which condo insurance coverage options are right for their unit.

It is important to note that while condos can be both rented and purchased, the condo owner should only purchase condo unit owners insurance if he or she resides in the unit. If a condo owner chooses to rent out the unit, then he or she should require the tenant to purchase renter’s insurance. Purchasing a unit owners policy for a condo in which the owner does not live can result in coverage being denied in the case of any damages.

Homeowners Insurance

For most Americans, owning their own home is their dream and ultimate goal. However, buying a home is a large investment to make and any homebuyer should want to protect their investment. While there is a lot that can be done to protect a home, having a homeowners insurance policy is the best way to ensure that both the home and the owner are protected in the event of a disaster or unexpected loss.

Homeowners insurance offers a variety of coverage options, but usually covers damages sustained by a house due to inclement weather or natural disasters. Some policies may also cover a homeowner’s liability when a person is injured on his or her property. Coverage options, such as those for mold, plumbing and electrical issues, are available through more inclusive policies. Coverage for flooding is not offered by homeowners insurance and must be purchased separately as a stand-alone policy.

Mobile Home Insurance

Owning a mobile or manufactured home does not mean having to forego the same protections afforded by renters and other homeowners. A mobile home is still an investment and should, therefore, be insured. Mobile homes are more prone to sustaining damages than other homes, especially during a storm. Standard mobile home insurance typically covers damages caused by storms and wild animals, as well as fire and plumbing damage.

While not all mobile home insurance policies offer every kind of coverage you may need, most policies have additional coverage options you can have included. If you have a garden outside of your home that you are fond of, then you may want to include land property coverage to your policy. Mobile homes are also prone to water damage, especially when plumbing or drainage issues are prevalent. Adding water damage coverage to your policy can be your saving grace in the event of water damage.

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