Similarities And Differences Between Homeowner’s, Landlord’s, And Renter’s Insurance
How we live embraces two facts: we either rent a structure or we own a structure. Structures are comprised of single-family homes, apartment or condo complexes, and mobile homes. We insure these structures, including what’s inside them, against fire and weather damage, theft, personal injury, and more.
Taking out insurance on a home begins when people sign papers at closing on a house. Renters take out insurance when they’ve moved into an apartment. The two types of insurance have similarities as well as differences. Renters and homeowners might be confused by these, so let’s examine them.
Similarities And Differences In The Structure
A home insurance policy covers the owner’s structure as well as any separate structures such as a garage. This is only similar due to a landlord’s policy covering the structure he rents to other people.
The differences are renter insurance policies cover only personal belongings, personal injury, liability, and more.
Similarities And Differences In Personal Belongings Coverage
This is where both a home insurance policy and a renter’s policy look a little alike. Personal belongings are covered under both policies. The only difference is that a homeowner is insuring his home as well as his belongings, so his insurance is going to cost more. Renters shouldn’t take for granted that the landlord’s insurance policy will cover their personal belongings. It won’t.
Similarities And Differences In Perils To The Structure
People buy insurance to give them financial security in the case of anything from mild to catastrophic failure. Home and landlord’s insurance cover damages to the structure such as:
• Fire and smoke
• Wind, lightning, hail, ice, and snow
• Civil disruptions and/or riot
• Theft, vandalism, or mischief with malicious intent
• Trees and other airborne objects
• When the HVAC, plumbing, sprinkler system, or major appliance catastrophically fails, or the pipes rupture due to freezing, insurance covers the damages.
What it doesn’t cover, either for homeowners or landlords is:
• War and/or nuclear explosions
• Earthquakes, landslides, and/or sinkholes
• Floods
• Neglect on the part of the owner of the structure
• Government seizure, demolition, or demand to be rebuilt according to present building codes.
What Disasters Renter’s Insurance Covers
Since the above is largely covered by the landlord’s insurance policy, renters won’t have to worry about damages to the structure. What about damages to the renter’s items, though? Renters can be reimbursed in the following situations:
• When a car or means of transportation is damaged or lost while on the property being rented
• When items are stolen out of a car, a bike or other means of transportation is stolen, while on the property being rented
• High-value personal items would be covered although with a sub-limit of coverage
Similarities And Differences In Other Insurance Coverage
Any kind of insurance, be it automobile, home, or renter’s insurance, covers liability and medical payments. Personal liability kicks in when someone sues you for tripping over the baby’s toys and they face plant on the floor. Most policies give this $100,000 although homeowners and renters can adjust the amount later.
Medical payments occur when a visitor, the UPS guy, or someone seeking directions is injured on your property. This coverage pays their medical bills and is limited to about $2,000. Medical payments are no-fault (no need to establish legal liability.)
Also included in both home and renter’s insurance are additional or alternative living expenses. As an example, let’s say a vicious storm tore through your neighborhood. A tree was uprooted and slung across your roof. The tree penetrated the roof right down through the attic and into the hallway on the second floor.
Families can’t live with a tree blocking the way to the bathroom. The home is not habitable, so both home and renter’s insurance will pay for you to live in alternate living spaces. Insurance companies consider such alternate spaces to be a hotel or apartment while the damage to your home is repaired. The situation will be paid up to a pre-determined time (three months is normal,) or to a pre-determined dollar amount.
Coverage For Other Structures On The Property
So far, we’ve discussed home and renter’s insurance on one single structure and/or detached garages on the property. What can homeowners or renters expect if another structure was placed somewhere on the property? What would be the parameters, insurance-speaking?
Coverage For Tiny Houses
Many tiny house owners park their new home on the property of a friend or family member. These tiny homeowners take off the wheels, plant some flowers, and their home is then permanent. Since the home is parked on someone’s property, who insures it – the tiny homeowner or the property owner?
What The Law Says
Technically, tiny house owners aren’t required by law in any state to insure their dwelling. It’s a good idea, of course, to be prepared for trouble. Taking out RV insurance (good for moving a structure) or mobile home insurance (good for the same) should cover the tiny house, parked or moving.
What Insurance Says
The factors governing how to insure a tiny house are (a) if you’ll be moving frequently or staying put, and (b) the house’s size and design. As an example, let’s say your tiny house is 400 square feet. You park it on the property of a family member and take off the wheels. It’s now permanent.
While you insure your tiny home for the structure, personal belongings, personal liability and medical, as well as alternate living arrangements, the family member on whose property you’re parked could add “other structures” to their insurance to-do list.
“Other structures” embrace outdoor pools (both above and in-ground,) fences, mailboxes, sheds, gazebos and guest houses or in-law suites. Your tiny house could be listed on the property owner’s insurance as a guest house or in-law apartment. The property owner should protect the tiny structure because it’s just as vulnerable as his own structure.
Similarities And Differences Between Homeowner’s, Landlord’s, And Renter’s Insurance
How we live embraces two facts: we either rent a structure or we own a structure. Structures are comprised of single-family homes, apartment or condo complexes, and mobile homes. We insure these structures, including what’s inside them, against fire and weather damage, theft, personal injury, and more.
Taking out insurance on a home begins when people sign papers at closing on a house. Renters take out insurance when they’ve moved into an apartment. The two types of insurance have similarities as well as differences. Renters and homeowners might be confused by these, so let’s examine them.
Similarities And Differences In The Structure
A home insurance policy covers the owner’s structure as well as any separate structures such as a garage. This is only similar due to a landlord’s policy covering the structure he rents to other people.
The differences are renter insurance policies cover only personal belongings, personal injury, liability, and more.
Similarities And Differences In Personal Belongings Coverage
This is where both a home insurance policy and a renter’s policy look a little alike. Personal belongings are covered under both policies. The only difference is that a homeowner is insuring his home as well as his belongings, so his insurance is going to cost more. Renters shouldn’t take for granted that the landlord’s insurance policy will cover their personal belongings. It won’t.
Similarities And Differences In Perils To The Structure
People buy insurance to give them financial security in the case of anything from mild to catastrophic failure. Home and landlord’s insurance cover damages to the structure such as:
• Fire and smoke
• Wind, lightning, hail, ice, and snow
• Civil disruptions and/or riot
• Theft, vandalism, or mischief with malicious intent
• Trees and other airborne objects
• When the HVAC, plumbing, sprinkler system, or major appliance catastrophically fails, or the pipes rupture due to freezing, insurance covers the damages.
What it doesn’t cover, either for homeowners or landlords is:
• War and/or nuclear explosions
• Earthquakes, landslides, and/or sinkholes
• Floods
• Neglect on the part of the owner of the structure
• Government seizure, demolition, or demand to be rebuilt according to present building codes.
What Disasters Renter’s Insurance Covers
Since the above is largely covered by the landlord’s insurance policy, renters won’t have to worry about damages to the structure. What about damages to the renter’s items, though? Renters can be reimbursed in the following situations:
• When a car or means of transportation is damaged or lost while on the property being rented
• When items are stolen out of a car, a bike or other means of transportation is stolen, while on the property being rented
• High-value personal items would be covered although with a sub-limit of coverage
Similarities And Differences In Other Insurance Coverage
Any kind of insurance, be it automobile, home, or renter’s insurance, covers liability and medical payments. Personal liability kicks in when someone sues you for tripping over the baby’s toys and they face plant on the floor. Most policies give this $100,000 although homeowners and renters can adjust the amount later.
Medical payments occur when a visitor, the UPS guy, or someone seeking directions is injured on your property. This coverage pays their medical bills and is limited to about $2,000. Medical payments are no-fault (no need to establish legal liability.)
Also included in both home and renter’s insurance are additional or alternative living expenses. As an example, let’s say a vicious storm tore through your neighborhood. A tree was uprooted and slung across your roof. The tree penetrated the roof right down through the attic and into the hallway on the second floor.
Families can’t live with a tree blocking the way to the bathroom. The home is not habitable, so both home and renter’s insurance will pay for you to live in alternate living spaces. Insurance companies consider such alternate spaces to be a hotel or apartment while the damage to your home is repaired. The situation will be paid up to a pre-determined time (three months is normal,) or to a pre-determined dollar amount.
Coverage For Other Structures On The Property
So far, we’ve discussed home and renter’s insurance on one single structure and/or detached garages on the property. What can homeowners or renters expect if another structure was placed somewhere on the property? What would be the parameters, insurance-speaking?
Coverage For Tiny Houses
Many tiny house owners park their new home on the property of a friend or family member. These tiny homeowners take off the wheels, plant some flowers, and their home is then permanent. Since the home is parked on someone’s property, who insures it – the tiny homeowner or the property owner?
What The Law Says
Technically, tiny house owners aren’t required by law in any state to insure their dwelling. It’s a good idea, of course, to be prepared for trouble. Taking out RV insurance (good for moving a structure) or mobile home insurance (good for the same) should cover the tiny house, parked or moving.
What Insurance Says
The factors governing how to insure a tiny house are (a) if you’ll be moving frequently or staying put, and (b) the house’s size and design. As an example, let’s say your tiny house is 400 square feet. You park it on the property of a family member and take off the wheels. It’s now permanent.
While you insure your tiny home for the structure, personal belongings, personal liability and medical, as well as alternate living arrangements, the family member on whose property you’re parked could add “other structures” to their insurance to-do list.
“Other structures” embrace outdoor pools (both above and in-ground,) fences, mailboxes, sheds, gazebos and guest houses or in-law suites. Your tiny house could be listed on the property owner’s insurance as a guest house or in-law apartment. The property owner should protect the tiny structure because it’s just as vulnerable as his own structure.
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