If you own or rent property, there is a great likelihood that the property—or your belongings that are inside of it—can be considered your greatest valued asset. And when something is valuable, you seek to protect it, and to protect yourself in the event that some damage or loss occurs in your space.
That’s where insurance comes in, but when it comes to property, what type of insurance is right for you depends on your relationship to that property. Different kinds of insurance exist for individuals who own their home and individuals who rent their living space. In this article, we’ll take a closer look at the features of homeowner’s insurance and tenant’s insurance, so you can see which is best for you.
Homeowner’s Insurance
Homeowner’s insurance is for you if you own your own home. Generally speaking, homeowner’s insurance provides protection in the form of covering damage to the interior or exterior of your home, or the loss or damage of your personal belongings. Most homeowner’s insurance also has a clause providing protection for personal liability, which can cover damages if someone brings a lawsuit against you for an accident or injury that occurs on your property.
Homeowner’s insurance is not required by law in any state, however if you have borrowed money from a mortgage company to purchase your home, chances are that the mortgage company will require you to carry homeowner’s insurance. The reason for this is that the mortgage company wants to be sure that their investment is covered, as most individuals would not have the financial resources to pay out of pocket for extensive home repairs or to have their home rebuilt in the event of catastrophic damage.
When purchasing a homeowner’s policy, be sure to understand not just what your monthly payment is for the premium, but what your deductible is if you end up having to file a claim. Make note as well of the plan’s liability limit, so you know in advance how much coverage you will be eligible to receive if you do have to make a claim.
Finally, talk with Superior about what exactly is covered by your plan and what is not. Most homeowner’s insurance plans do not cover damages due to floods or earthquakes, for example, so if you live in an area prone to these occurrences, you may wish to purchase additional coverage.
Tenant’s Insurance
Tenant’s insurance is sometimes called renter’s insurance, and it’s the right type of insurance for you if you rent your home. Tenant’s insurance provides protection to cover damages to or loss of your personal property. It’s also important to note that tenant’s insurance, like homeowner’s insurance, usually provides liability coverage in the event that someone files suit against you if they have an accident or are injured while in your space.
Another valuable feature of tenant’s insurance is that it can provide coverage for you if you are not able to live in your home for a certain period of time due to damage from a covered event like a fire. In a case like this, tenant’s insurance will help cover the cost to stay in a hotel or make other arrangements while your home is being restored.
Like homeowner’s insurance, tenant’s insurance has a deductible that you have to pay first before the insurance company will kick in and start helping you with covered damages.
Insurance is crucial to protecting your valuable assets, whether that is the home you own or the belongings in the home you rent. Contact Superior Insurance and Auto Tags today to speak with an expert about your insurance needs!