Can I get home owners insurance if I rent a house?
 In case you're renting your home, you are most likely to go with a renters insurance policy. This type of property insurance provides insurance coverage on all of your belongings but doesn't take the value of the building into account, because it is covered by your landlord's home owners insurance policy. Your landlord's policy doesn't include your property, though, so you are recommended to have your own coverage. And because the house itself is not used in calculations, renters insurance usually has much lower premiums.
Like home owners insurance, renters insurance is a combined package of both damage coverage and liability you may face as a result of causing damages or injuries to third parties. And like in the case of home owners policy, you will have to purchase separate coverage for floods or earthquakes.
Most renters insurance policies will cover the additional living expenses if you are forced to leave your home by any external event (fire, natural disasters) and pay the difference between your normal and additional living expenses, although insurance companies usually set a maximum amount of such difference.
You can choose from two major types of renters insurance policies:
- Actual Cash Value – the cost of replacing your possessions with the depreciation taken into account
- Replacement Cost – the actual cost of replacing your possessions without the depreciation
Both types of renters insurance provide a basic coverage for a limited list of your possessions. If you feel you need additional coverage on broader list of things, you may consider purchasing a «floater» - additional insurance policy covering your possessions from other types of risks, not included in the standard policy. |
