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Home vs Renters Insurance

There are people who rent apartments and others who own a house. One thing is for certain: whether it is renting an apartment or buying a house, each one is considered one’s home. There are plenty of things to consider when renting or buying; however, having your home insured is key in both scenarios.

 

People think that renters insurance serves no other purpose than to replace personal property like clothes, furniture, and electronics if something were to happen to them. It’s true; however, home and renters insurance do have differences and similarities. One of these similarities includes both having liability and personal property coverage. They have differences as well and as a buyer you should know what they are in order to make the appropriate choice.

 

Coverage for the Structure

One of the main differences between renters and home insurance is that homeowners insurance covers the home and any other buildings you may have on your property. If you have renters insurance it doesnt cover the building, that’s what your landlord’s insurance is for.

 

Cost

Renters insurance is generally affordable, unlike homeowners insurance which is more expensive because it covers your entire home. Homeowners insurance is also more expensive due to several reasons: people that own houses usually have more belongings, their homes are larger than apartments, and their furniture consists of high value items.

 

Personal Property

Your landlord’s insurance may not cover everything in your home, that’s why it’s important to have renters insurance. Renters insurance covers your personal belongings if they are stolen or damaged. Keep in mind when insuring your property and belongings to their proper value that you have two options: replacement value or actual cash value.

Replacement value is more expensive; however, it covers your home and your belongings at the price it would cost to replace them including inflation. Actual cash value is cheaper with less coverage, it covers the total sum of your belongings and what they are worth at the time of your incident.


Exclusions

Some exclusions may be natural disasters like earthquakes or floods. In order to protect your home and belongings you should purchase flood insurance and add earthquake endorsements to your policy. To get flood insurance, go to the National Flood Insurance Program (NFIP).

This information is provided by Miami insurance lawyer Alonso & Perez, LLP. Our areas of practice include bankruptcy, insurance litigation, foreclosure defense, immigration law, and more. Call 305-676-7545 to speak with one of our attorneys or a property insurance disputes Miami lawyer and receive a free consultation We look forward to working with you.

This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.