Hayek Insurance Blog
Owning or renting a home will require insurance to protect its structure and the things inside it. That’s where homeowner’s insurance and renter’s insurance come in. Both of these protect, but not in similar ways. You’ll learn more if you read this article.
Brief Summary Of Homeowner’s Insurance
If you have a house, you’ll need homeowner’s insurance. The amount of insurance will cover the replacement cost of the home in case of total loss. Not only that, but also damage to personal items inside the house such as appliances, clothing, and furniture. If you want to take out a mortgage, you’ll be required to use your homeowner’s insurance.
Overview of Renter’s Insurance
Tenants who do not own the property will purchase a renter’s insurance. Its coverage includes property protection that is inside the real estate. The policy will replace costs for lost items in the property. Moreover, the coverage will extend if your car or bicycle is damaged while you’re at work.
What Are The Difference Between Homeowner’s and Renter’s Insurance
One key difference between the two insurances is the type of property damage they cover. Homeowner’s insurance covers the dwelling coverage as opposed to renter’s insurance. In this case, you don’t need to have both if you live in the same house.
A standard homeowner’s insurance will cover five types; personal property, liability, medical, additional expenses, and dwelling. Since the dwelling coverage is not included in the renter’s insurance, it becomes less expensive.
Dwelling Coverage: What Is It?
The dwelling coverage typically refers to protection from the destruction of the home’s structure. To protect you from financial costs, you need to purchase this should you face disaster. Why is it not included in the renter’s insurance? It’s because most renters will not be held responsible for any damage to the building itself.
What’s not included in homeowner’s coverage?
For standard homeowner’s insurance, the following items won’t be covered;
Why are roommates not included in renter’s insurance?
Roommates are not included in the renter’s insurance because policies do not consider roommates as a risk. For this reason, insurers list considerations for making the policy exclusively for an individual.
If you own a home, you’ll be required to purchase homeowner’s insurance if you have a mortgage. Thus, renter’s insurance does not include dwelling coverage; that is why it’s significantly cheaper. Nonetheless, both insurances are important to protect your assets.
At Hayek Insurance, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (805) 496-8835. Get your free quote today by CLICKING HERE. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!