Home insurance: homeowners, renters and landlord cover explained
Home insurance comes in several forms depending on whether you own, rent or let out the property. Each protects different things.
Homeowners insurance
A standard homeowners policy covers the structure of the house, your belongings, personal liability if someone is injured on your property, and extra living costs if you cannot live at home during repairs. Mortgage lenders require it.
Renters insurance
Your landlord’s policy covers the building, not your belongings. Renters insurance covers your possessions and your personal liability, and it is usually inexpensive.
Landlord insurance
If you rent out a property, a standard homeowners policy may not cover you. Landlord policies cover the building, liability toward tenants and, often, lost rent after an insured event.
Replacement cost vs actual cash value
Replacement cost pays what it costs to replace or rebuild today. Actual cash value subtracts depreciation, so you receive less. Check which one each quote uses, for both the building and your belongings.
Flood is usually separate
Standard home policies generally exclude flood damage. Flood cover is bought separately, either through the National Flood Insurance Program or private insurers, and policies often have a waiting period before they take effect.
Comparing quotes
Match the dwelling coverage amount, deductible and liability limit across quotes. Ask whether the deductible for wind or hail is a fixed amount or a percentage of the home’s insured value.