Homeowners and Renters Insurance: Definition, FAQs, and Limitations

Most homeowners doesn't know that they have the option to ensure their home, these also applies for those who are renting.

Homeowners and Renters Insurance protect your personal property against damage or loss, and insures you in case someone gets hurt while on your property. You may already have insurance on your home if you have a mortgage on the property, because most lenders make insurance a condition of the loan. Renters insurance, or tenant insurance, offers renters coverage similar to homeowners insurance. If you are a renter, do not presume that your landlord has insurance on your personal belongings; you may want to have a separate policy.

Frequently Asked Questions:

What are covered in the insurance?

Damage to your home, garage, any other building in your property
Loss of furniture due to theft or natural causes whether you are home or not.
Additional living expenses if you need place to stay while your house is on repair
liability for bodily injury and property damage that you cause to others through negligence
liabilityfor accidents happening in and around your home, as well as away from home, for which you are responsible

What are not covered in the insurance?

Repair and replacement done by earthquake
Floods, flood related erosion, abnormal tidal surges, mud flow
Damage due to land movement or land slides
Mold
Not all damage caused by a volcanic eruption is covered
Damage done by animals
Wear and Tear or deterioration

Who needs homeowners and renters insurance?

If you mortgage, lenders will require you to have homeowner insurance
If you are not on mortgage, it is a good idea to have a homeowners insurance to protect you and your home.
If your home is financed, the bank may require you have homeowner insurance to protect them from having a loss

What is the coverage for out buildings and unattached structures?