When I got my kids a dog, I had no idea that it could affect my homeowners insurance. I happened to run into my insurance agent in the store when I was buying dog food and he asked me what kind of dog we had. When I told him, he said I should stop in the office the next day. I had no idea that things like this could affect premiums, so I started asking what else could do it as well. I created this site to help others understand some of the finer points of homeowners insurance and what they should think about to manage their rates.
If you were living in a house you owned and now moved to an apartment because you sold your house, you will need insurance for the rental property, but it will not be the same type of policy as you had for the home you owned and lived in. Instead, you will need renter's insurance, and while renter's insurance is different than homeowner's insurance, there are similarities between the two types of policies.
Both offer protection for your things
Both homeowner's insurance and renter's insurance offer ways to protect the things you own. With homeowner's, your policy covers your house and all your personal belongings. With renter's, the coverage only covers your personal belongings, because you do not own the house you are living in. Without insurance, you would receive no compensation for your things if they were stolen or destroyed, and that is one of the top reasons you should never go without homeowner's or renter's insurance when you own or rent a place to live.
Both offer ALE coverage and liability coverage in most cases
Secondly, both types of policies offer liability coverage, which means you are protected against accidents that might occur to guests at your home or apartment. Both types also generally offer something called additional living expense (ALE) coverage. ALE is absolutely vital to have, as it will come in very handy if you ever need it. To need ALE coverage, you would have to go through something that caused so much damage to your house or apartment that you had to temporarily move out. With ALE, your insurance company would help pay for the added expenses you would have in a situation like this. This can include paying your hotel bill and compensating you for the extra costs of food you would incur during this time.
Both give you peace of mind
Finally, whether you own or rent the place you live, having insurance will give you peace of mind. In either case, your insurance plan will protect you against perils that could damage your things or cause inconveniences in your life. Without insurance, you are taking a big risk, as you could lose everything you own and not receive any compensation if this happened.
While both homeowner's and renter's insurance can offer similar types of coverage, it is always important to buy the right policy. If you have questions about the insurance you need, contact an insurance agency, like Woodmansee Insurance Inc.
Share5 September 2019
