If you have been living in a rented place in New York, then you already know the aspects covered by renters’ insurance. But, if you switch to your own house, you need to get homeowner’s insurance, which differs from renters’ policies and coverage. So, let’s get to know what your expectations should be and how these two differ.
- Coverage under renters’ insurance
This covers everything that comes under homeowners’ insurance coverage. However, if there is any damage to the rental property, then it falls under the exclusion list. The aspects covered in the renter’s insurance are –
- Loss or damage due to fire, theft, or vandalism.
- If the covered loss is so bad that you won’t be able to live in that house anymore, you will receive temporary living expenses.
- If someone gets hurt at the place where you live due to an accident, then personal liability and medical bills are also covered. This coverage also extends to the damage caused when you are away from home.
- Your rental insurance policy covers your belongings if they are stolen, whether at home, on the subway, or at a restaurant.
You must always go through the exclusion list to understand what the insurance covers and what is not covered, such as mice or bed bugs. The policy also won’t include damage to the personal property of other people living in the rented home; this can be your spouse, a blood relative, or an adopted child. In this case, the roommate must get their renter’s policy.
- Coverage under the homeowner’s insurance policy
If we talk about the typical homeowner policy, this would cover damage to the house and personal property. It also includes living expenses, personal liability, and medical fees, but again, you must check the exclusions mentioned in the policy. The things that are not covered usually are:
- Flood or any other type of water damage.
- Any problem that could have been solved before it reached the point where it is causing the damage at present.
- Natural disasters such as earthquake.
- In homeowner insurance claims for water damage and mold, termite infestation is also not covered.
People living in your home but related to you through blood, marriage, or adoption will not be eligible for an additional claim. Thus, they need to buy extra policies to cover the gap. The most popular ones are flood and earthquake policies.
- What is the cost difference between homeowner and rental insurance?
Renters’ insurance usually costs less than homeowner’s insurance because the latter covers the structure of the building, but a renter’s policy does not.
Based on the place where you live and the size of your home, homeowner insurance can range to several thousands of dollars. Moreover, based on the deductibles you are willing to pay, the premium will get lower if you increase the deductible for homeowner insurance. The premium price can be affected by home size and age, but it does not matter in the renters’ case.
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Conclusion
So, when you have a high-value personal item, you must pay more to insure it. If a policyholder makes too many claims within five to ten years, they must pay a higher premium. To ease things up, you must also know does renters insurance cover mold damage to ease things up.
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