4 Basic Types of Cheap Home Insurance

Almost everybody needs to insure their home, and that is true if the owner occupies his or her own home, rents it, or leases it out to somebody else. In order to be properly insured for the lowest possible premium, it is very important to obtain the right coverage for your needs.

If you carry a mortgage on your home, a lender will probably require homeowners insurance. Similarly, many landlords require their tenants to take out renters insurance. Even if you own your home, without any outstanding loans, it is probably a good idea to carry some insurance against an unexpected loss or damage.

Here are the 4 basic types:

1. Home Owners Insurance

If you live in the home you own, you will probably need a basic homeowners insurance policy. You will cover your building, land, and the contents of your home. You should also have liability insurance to protect yourself in case a visitor claims they were injured in your home because of your negligence. In case your home is damaged so that it cannot be inhabited while it is being repaired or rebuilt, a homeowners policy can also provide relocation assistance. Relocation assistance may pay for a hotel room, apartment, or rental house while your own home is being repaired.

2. Renters Insurance

If you rent a home or apartment, you probably don’t have to cover the actual building or property. But you do want to insure your own personal property against loss or damage. Your home computer, television set, and other belongings can be worth thousands of dollars, and they should be insured in case of theft or damage. Many renters insurance policies will also provide money to relocate in case your dwelling should become unlivable.

3. Landlord Insurance

If you own a home that you lease out to a tenant, you still need to protect your building and land against damage. If the fence is damaged in a storm, you cannot depend upon your tenants to fix it.

4. Condo Insurance

Even if you own your condominium, your insurance needs are probably similar to a tenant’s insurance policy. That is because the building association usually covers the entire property with their own policy. You still need to cover your belongings with personal property insurance.

A Note About Personal Property Coverage

Since homeowners, renters, and condo owners need to cover their personal property, it is important to consider the different levels of coverage you can choose from. If you chose to cover the value of your property, you will only get “garage sale” prices when you make a claim. It usually does not cost much more to insure the replacement value of your belongings, which means your claim will pay an amount that could replace the items by purchasing them new from a store.

If your premiums are too high, consider adjusting your deductible or improving your home. The difference in premium between a $500 yearly deductible and a $1500 yearly deductible can save you hundreds of dollars a year. Likewise, many insurers offer substantial discounts for safety features and anti-theft devices.

Finding Cheaper Homeowners Insurance

Of course, your homeowners insurance quotes will vary by the value and location of your home. However, I have found large rate differences between the top property insurers in the same location, and for the same home! You should take a few minutes to compare home insurance quotes before you purchase, because a small investment of time can save you hundreds of dollars every year.

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Home Insurance

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Condo, home insurance, homeowners, Landlord, Renters

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