Apartment and Homeowner’s Insurance: What’s Right For You?

It doesn’t matter if you’re buying or renting a home or apartment to live in: no matter what, you’re going to want to have insurance to protect you. While it is becoming increasingly more popular to need renter’s insurance before you can rent a property, it is essentially mandatory to have homeowner’s insurance when you buy a home. So which one is right for you? Though there are many similarities between the two, it’s important that you understand the differences so that you know exactly what you’re protected against. Here at GVS Insurance Agency, we want you to have as many of your questions answered before you make your final insurance purchase. Here are some of the most important similarities and differences between homeowner’s and renter’s insurance: Similarities: Payments. Both homeowner’s and renter’s insurance require regularly scheduled payments to keep your coverage. Most people choose to make a monthly payment, but you can also choose to pay a one time, annual lump sum payment for a full year of coverage. In many cases, choosing this option will save you money in the long run. Deductibles. If you make a claim under renter’s or homeowner’s insurance, you will have to make a payment of a deductible.Living Expenses. If anything happens to your home while you are living in it that makes it unlivable (such as fire, water damage, etc.), then your insurance will give you money to cover your basic living expenses, including housing and food. Of course, this will only pay for things covered under your policy. Make sure you read the fine print so you know for sure if your circumstances are covered.  Differences: Personal Items. If anything happens to your personal belongings while living in a rented property, such as theft or vandalism, your renter’s insurance will cover the cost of replacement. Homeowner’s insurance will not cover your personal belongings. Building. Since you do not own the property that you live in as a renter, your renter’s insurance policy does not cover the structure that you’re renting– though, since you don’t own it, this shouldn’t bother you at all. Homeowner’s insurance does insure the building you own, including any other structures on your property, such as a garage, shed, poolhouse, etc. Repair/Replacement. If anything happens to the building/structure of your home, like fire, water damage, vandalism, theft, or even lightning, your homeowner’s insurance will cover the cost of repair or replacement. However, not all circumstances and perils are covered in your policy, such as flooding, earthquakes, or nuclear hazards, so be sure you’re fully aware of your policy before you assume you have coverage. With renter’s insurance, again, since you’re just renting the property, you won’t have coverage for this in your policy. Liability. If anything happens to anyone in your rented property, your renter’s insurance may find you liable for the incident. Fortunately, your policy may help you pay for any expenses resulting from this, like medical expenses from an injury. Homeowner’s insurance may not cover this. Obligation. You are not legally required to have renter’s insurance as a renter, but depending on the building or landlord you are renting from, they may require you to buy a renter’s insurance policy. You are technically not legally required to have homeowner’s insurance either, however, if you’re getting a mortgage or someone is giving you a loan, they will likely require you to get homeowner’s insurance as well. Most people fall into this category, making most people obligated to purchase homeowner’s insurance. Are you moving to a new apartment and they are requesting insurance? Come to GVS Insurance as we have the lowest rates! In addition to renter’s insurance, we also offer homeowner’s insurance, auto insurance, and many more. Visit our website to send us a message or give us a call at (713) 772-9092.