Home Insurance for Those Renting or Owning Co-Ops or Condos

Home Insurance for Those Who Rent

Home insurance for renters, or "Renters Insurance", is a relatively inexpensive way to insure that should your belongs be destroyed though a disaster, that the costs to replace the belongings will be covered. There are actually two different ways to get your belongings covered through home insurance for renters.

Home Insurance for Renters Option #1: Replacement Cost

The most comprehensive coverage for renter's insurance is getting one that covers the replacement costs of your belongings. If your home insurance for renters plan covers the replacement cost, then even if you bought your TV used for $50, the home insurance policy will cover the replacement cost, typically by purchasing a new, comparable TV at its current value. This type of insurance is important if you are good at finding good prices for your things, since replacing them at the cost your purchased them at will be difficult.

Home Insurance for Renters Option #2: Actual Cash Value

The less expensive, but less comprehensive option for renters is to get a policy that covers the actual cash value of your belongings. Since most of your belongings have depreciated over time, they will likely be worth much less than you would have to pay to replace them. However, this option is better than nothing.

Home Insurance for Those Who Own Co-Ops or Condos

Owning a a co-op or condo poses a unique situation, in that you you must have home insurance for your personal space and belongings, as well as insurance for communal property of which you are a partial owner. This usually means that you will have to have two separate home insurance policies to cover each.

Sometimes certain features of a condo or co-op are covered by the co-op / condo association's insurance. Sometimes the association's home insurance will cover the original building and elements that were included in the construction, and your own personal home insurance policy will only need to cover any remodeling and alterations done to the original property. Occasionally the association's home insurance will cover changes made by previous owners as well.

What Your Own Home Insurance Policy Covers

Your own home insurance policy will cover your property in the event of a disaster or burglary. It also includes liability protection, so that if you, your family or your pets cause injury or damage to another person or property, your home insurance policy will cover it.

It is important to familiarize yourself with the limitations of your home insurance policy so you know beforehand what isn't covered. For instance, while it will include coverage of your belongings, there will likely be a total limit of reimbursement. Also, more expensive items like jewelry and furs will likely only be covered up to 1 or 2 thousand dollars each, so you may want to get additional insurance for these items.

What the "Master Home Insurance Policy" Covers

The "Master Home Insurance Policy", which is provided by the your co-op / condo association, typically covers the common areas shared with other members of the association, including common outdoor walkways, elevators, stairs, outside walls and the roof.

Just as it is important to understand the limitations of your own home insurance policy, you should know the limitations on your master policy as well. That way you understand what costs you will be responsible for, as a member of your co-op / condo association, should damages occur.