A home can require a tremendous investment of money, time, and energy. Homeowner’s insurance is designed to protect that investment by insuring the actual structure or structures and the personal possessions in and around them, and providing liability protection for the residents. Through homeowner’s insurance, you can protect yourself and your family from enormous loss in the event of damage or destruction to your home and property.
A basic homeowner’s policy helps protect, up to the policy limit, against losses from 11 perils, such as fire, wind, theft, vandalism, and so on. You can purchase more extensive coverage to cover other mishaps. Losses due to events that have the potential for more widespread destruction, such as floods, earthquakes, and wars, are excluded from basic homeowner’s insurance policies. You must purchase separate policies to cover against such catastrophes.
Renter’s Insurance :
If you rent an apartment or a house, the building owner is responsible for any perils that befall the property. Rest assured, if the place burns down, your landlord’s insurance is responsible to compensate him for damage to the structure.
But if your personal belongings — your furniture, your stereo, your clothing — are destroyed, it’s you who loses — unless you have renter’s insurance.
Renter’s insurance is a kind of homeowner’s policy for non-homeowners. It contains most of the same provisions of a basic homeowner’s policy, except the part that covers the home itself. Up to certain limits, a renter’s policy covers your personal belongings against destruction or theft, and protects you against claims of liability if you cause injury to someone or their property.