Homeowners Insurance: The Basics

A binding, legal contract between the insured and the insurer to protect the insured, their home, and belongings if they are damaged or destroyed A home can be a condominium, apartment, house, or mobile home Protection is provided against losses caused by fire, water damage, storm, theft, and other perils Perils are any cause of loss

Homeowners Insurance: The Basics Homeowners policies also protect anyone named in the policy including: spousechildren other residents guests Also covers detached structures such as: garagesshedspools

Homeowners Insurance: The Basics Items that are excluded or limited on a Homeowners Policy Items that tend to result in liability claims such as boats and ATVs One-of-a kind items such as jewelry, art and collections The insurer can opt to purchase an endorsement that covers unique items or special circumstances Certain natural disasters in areas prone to them are also excluded from standard coverage

Homeowners Insurance for Renters A survey conducted by the Independent Insurance Agents and Brokers of America found that nearly two-thirds of renters do not have renters insurance An average two bedroom apartment can easily contain personal property that would cost more than $20,000 to replace Renters Insurance is relatively inexpensive to own

Renters Insurance Your landlord or association may have insurance, but it only protects their building Your belongings are not covered under their policy There are several types of coverages that are important to understand

Renters Insurance Renters insurance protects individuals who live in a house, mobile home, condominium, or apartment that is owned by another person Protects against: TheftTheft Loss of personal propertyLoss of personal property Loss of useLoss of use Similar to homeowners insurance except that it does not cover the dwellingSimilar to homeowners insurance except that it does not cover the dwelling

Renters Insurance Renters Insurance Covers: Personal possessions such as furniture, CDs, electronics and clothingPersonal possessions such as furniture, CDs, electronics and clothing Loss of useLoss of use Medical paymentsMedical payments Renters Insurance does not cover: Structural damage caused by carelessness such as damage by animalsStructural damage caused by carelessness such as damage by animals

Renters Insurance: Types of Coverage Liability Insurance Liability insurance protects you when you are at fault or being suedLiability insurance protects you when you are at fault or being sued Provides coverage for bodily injuryProvides coverage for bodily injury If someone gets hurt in your home your policy will cover any medical expenses incurred from the injury Property damage liability covers any damage done to the building and belongings of others in the buildingProperty damage liability covers any damage done to the building and belongings of others in the building

Renters Insurance Liability Insurance (continued) Most policies cover the behavior of household petsMost policies cover the behavior of household pets Renter is liable for events they cause or which occur within their homeRenter is liable for events they cause or which occur within their home Some events which are caused by a landlords negligence may be covered by their insurance instead of rentersSome events which are caused by a landlords negligence may be covered by their insurance instead of renters

Renters Insurance Loss of Use Insurance Protects you when your home is not livableProtects you when your home is not livable Example: if your home is unsafe after a fire, being repaired, etc… Most often pays for temporary housingMost often pays for temporary housing May pay for additional costs resulting from the home being unusableMay pay for additional costs resulting from the home being unusable

Renters Insurance Property Insurance Actual Cash Value (ACV) vs. Replacement Cost ACV coverage only pays for what the property was worth at the time of loss, minus your deductibleACV coverage only pays for what the property was worth at the time of loss, minus your deductible Replacement cost coverage will pay what it actually costs to replace the items you lost, minus your deductibleReplacement cost coverage will pay what it actually costs to replace the items you lost, minus your deductible You should talk to your agent if you have items that are valuable or irreplaceableYou should talk to your agent if you have items that are valuable or irreplaceable

Renters Insurance Package Policy Contains two or more types of coverageContains two or more types of coverage Most homeowners policies are packages which include property, liability, and loss of useMost homeowners policies are packages which include property, liability, and loss of use

Renters Insurance Take Inventory To ensure that you are compensated for any belongings you lose in a loss you should inventory all of your personal belongings Photograph or videotape each room Keep receipts for major items Keep documentation in a place other than your home

How to Reduce Risk You can protect yourself against a loss by following basic guidelines Develop good security habits Lock your doors Install deadbolts Dont let your house look vacant

Homeowners Insurance: The Basics You can protect yourself against a loss by following basic guidelines Reduce Water Damage Check the pipes in your house When you go away have someone watch over your house Turn off the taps to your washer

Homeowners Insurance: The Basics You can protect yourself against a loss by following basic guidelines Reduce Fire Risks Install and maintain fire alarms Have an electrician examine your electrical systems Unplug heat producing appliances Dont leave things on the stove unattended Have your furnace inspected regularly