Whether you rent or own your home, you know having a good insurance policy in place is of the utmost importance. Accordingly, it’s important to know the difference between renters insurance and home insurance, especially if you’re transitioning from renting to owning. Each policy offers different coverages and limitations, and you want to be certain you understand the terms and conditions to ensure you select the best policy for your needs.
3 Key Differences Between Home & Renters Insurance
With home insurance, the physical structure of your home (as well as your belongings) is covered by your policy. Conversely, renters insurance only covers your personal belongings; any damage to the structure itself will be covered by your landlord’s property insurance. If you cause damage to your rental in some way, any liability coverage you have may be used to cover costs.
Renters Insurance Is Not Always Required
When buying a home, most mortgage companies insist buyers have a home insurance policy in place. This is not usually the case when renting a home or apartment. While some landlords insist a renter’s policy is implemented, the fact remains that many renters do not have policies in place. Whether you rent or own, not having an active policy can be highly detrimental, as you run the risk of losing both your possessions as well as your home.
Additionally, a renters insurance policy often costs far less than home insurance. The reason for this is simple — even if catastrophic damage occurs to your rental, the cost of replacing your belongings is bound to be less than the cost for replacing or repairing an entire home. Renters insurance is extremely affordable in this case, with policies costing only $20 a month for reliable coverage.
In Polson, MT, renters and home owners look to Bishop Insurance Service for a wide range of trusted products. The company also provides life and auto insurance to ensure the most important things in your life are protected. Call (406) 883-5372 today to speak with an insurance agent about your specific needs, or visit their website to learn more about the company.