Imagine a fire, theft or damage to your home. What if you lose not only your personal belongings, but also your place to live? We don’t like to think that our lives could be uprooted in such a way.
A home means very different things to different people. For some people the home is property they own, for others it’s an apartment they rent, and for some others it’s an investment property they rent out to others.
You never know what life is going to throw your way. That’s why it’s important to purchase insurance, whether you’re a homeowner, a tenant, or a landlord. It’s always better to be proactive and protect yourself against the worst case scenario.
Most homeowners know they need insurance to replace and repair their property, dwelling, and belongings in case of an unfortunate event. However, the lines become blurred when it comes to tenants and landlords. Tenants think they don’t need insurance because they don’t own the building. Landlord think they don’t need insurance because their personal belongings aren’t in the home. In this case both are mistaken.
Here’s what homeowners, tenants, and landlords need to know about buying insurance:
When you buy a home you need to purchase homeowners insurance to protect the property, the building, and your belongings inside the home. Before you can do that you need to know the value of the home and the land, as well as the value of your personal belongings on the premises. This includes items inside additional structures other than the residence, such as a shed, barn, or garage.
Tenant insurance is also commonly known as renters insurance. You need it if you’re renting an apartment, home, or other type of dwelling from a third party. Tenant insurance protects your personal belongings inside the home. Unlike homeowner’s insurance, you don’t need to purchase insurance to cover the repair or replacement of the structure of the dwelling, because that’s the landlord’s responsibility.
If you have theft or damage to the inside of your home and lose your personal items, tenant insurance can help you recover your losses. The easiest way to determine how much coverage you need is to take an inventory of your belongings, everything from dishes in the kitchen to clothes in your closet. Keep the list updated to ensure the total value of your items is covered.
Insurance coverage needed by a landlord is a simpler version of homeowner’s insurance. Landlords don’t need to purchase insurance to cover the cost of their belongings inside the building because they don’t have any. However, they do need to purchase insurance equal to the value of the structure of the building. It’s important for landlords to have the property evaluated and ensure you can recuperate the costs if you need to repair damage to the building.
Landlords also need to have liability coverage to protect tenants who may be injured while on the property. If a tenant slips and falls on a broken stairway or an icy porch the landlord can be held liable for the injury, pain, and suffering as well as the medical costs. Insurance helps cover these costs.