Select the Right Sort of Home Insurance
Before you go shopping for home insurance, take a minute to understand what you need. Most people understand that premiums will vary by zip code and the value of their home. The value of the contents inside the home, and the condition of the home will also have an effect on premiums. However, the type of home insurance you purchase will also be affected by your type of living arrangement. I have outlined the four basic types of home insurance below.
Resident Homeowners Insurance
The most common type of home insurance is homeowners insurance that is purchased by an owner who lives in the home. This policy will cover the actual home. You may have a pollicy which will pay out the actual value, or one that covers the replacement value of the home. Homeowners insurance also covers the contents of your home, and probably includes liability insurance in case somebody is injured on your property.
Most mortgage companies will require a homeowners insurance policy. Even if you have paid off your mortgage, you will want your home protected against damage, theft, or injury. Keep in mind, that many homeowners policies do not cover flood damage, and you may need seperate coverage.
Landlord Insurance
If you own a home that you rent out, you will still need to carry insurance on the property. You should not need to insure the contents of the home, and can pass that requirement on to the tenant. A landlord's home insurance policy will probably also cover liability in case the tenant or a visitor is injured and can demonstrate fault.
Renters Insurance
If you rent an apartment or house, you will need a renters insurance policy. This type of insurance will cover your possessions against damage or theft. You should not need to insure the actual building because the owner is responsible for that. You may also have liability coverage in case of an injury on your property. Renters insurance is usually inexpensive. Many landlords will require renters insurance.
Condo Insurance
Even if you own a condominium, you probably do not need to insure the building. The condo association usually holds a policy to insure the actual structure. So your policy would be similar to a renters policy, even though you own your condo. It will cover the contents of your dwelling, and should provide some liaility protection.
Compare Home Insurance to Save Money!
We all shop for home insurance at some point. If you have just moved, bought a home, or are unhappy with your current coverage, you can compare home insurance policies online with a quick form. Always look for a secure server, privacy policy, and a Better Business Bureau participation link. Now that you understand what type of home insurance you are looking for, you should have an easier time finding a high quality insurance policy for the most affordable price!
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