Renters or Homeowners Insurance? Are they Worth It?
The Value of Homeowners and Renters Insurance
Although homeowners and renters insurance are optional in most states, there are several good reasons for having this type of insurance. According to the Insurance Information Institute (III), the number of insurance claims for residential homes has increased by at least 5 percent since 2011. They also show where the wind, fire, and storm damage claims rate the highest number of claims annually. Some lenders require loan recipients to get insurance on the home they are buying, but in many cases, insurance is easy to avoid. Since the number of claims is rising, it serves the property owner or renter to get insurance because the odds are becoming more even that they will become a statistic. Recent weather changes have produced massive storm outbreaks in the past two decades that have not been seen since written records have existed.
Another benefit of homeowners and renters insurance is the amount of benefits that it covers. The actual structure itself is insured with either type of policy. Damage to other structures on the property like sheds and garages are included in a renters or homeowners insurance policy. Personal property is included in the total for items lost on a homeowners claim. Owners insurance also covers you and your family as well as any other person who might suffer damage in a disaster like a flood or fire, such as a family friend or hired service worker. Medical payments for hospital and emergency treatment are also covered by this type of policy. A homeowners insurance policy protects the property user from lawsuits, and it provides a way for them to recover most of their property value.
Medical for others
Even if a person is only renting a property, renters insurance protects and reimburses people for their personal items and furniture that are not likely to be included in the landlord’s property insurance policy. Even people who do not live in flood-prone areas should have a policy that covers flood damage because leaking foundations and broken pipes can flood a home causing devastating damage. Another benefit of renters insurance is the fact that it covers property stolen by theft. Homeowners insurance offers added benefits compared to the renters insurance package like paying the medical bills for people who do not live at the residence.
Renters insurance is less than two hundred dollars per year. Some insurance companies offer multiple line discounts that give people a discount on their total insurance bill when they have two or more lines of insurance with the company. For instance, if someone has home and auto insurance, the insurance company may offer them a 10 percent discount for having more than one type of insurance. There are other discounts available to property owners who get homeowners insurance. In some cases, it can be taken off of personal income tax at the end of the year.
Homeowners insurance varies by state, but it ranges between $700 and $1100 per year. Although some people say that the amount is too much to pay, it is relatively cheap in comparison to the amount of money it costs to replace everything alone. Each insurance company has a different rate for renters and homeowners insurance policies. Their discounts and rewards programs are also different. Experts recommend that people research local insurance companies that have been in the area for a long period. They also say that it is important to hire someone with a good reputation, who has won awards, who is affiliated with local businesses, and who is licensed and bonded to work with people and businesses in the state. Asking friends and neighbors who they recommend is another way to find a good company who has a reputation for being an honest, local insurance company. The main thing is to do the research to see what types of policies are in each area, and compare them with a simple pros and cons chart to narrow down a list of people to contact for an estimate.