06 Oct Downsizing from Homeowners to Renters
My husband and I are making a huge change in our life this month. We sold our home of 32 years and are downsizing. Since we are not exactly sure where we want to move, we decided to rent an apartment for a year and take our time looking for the perfect smaller home. The checklist of things to do and people to contact seems endless. Today’s task was getting our insurance changed from a homeowners policy to a renters policy. I researched the differences and here is what I came up with.
Both homeowners and renters policies are designed to cover your property and belongings in case of a disaster such as fire, theft, or water damage. The main difference is the homeowners policy includes the structure of the building where the renters policy mainly covers your personal belongings that are in that unit.
Both types of insurance policies should include liability insurance. This protects you if anyone gets injured while in your unit or home. In a renters policy you should also be covered for any property damage you cause. For example, if you left the water running and flood not only your bathroom but the unit below you, you would be responsible for the repairs in both units.
Many apartment complexes have a required minimum amount of liability you must carry. Usually it is $100,000 but you can increase this number to give yourself more protection for only a few dollars more of premium. And speaking of premiums, renters insurance is quite a bit less expensive then homeowners insurance. That is good news!
If you would like to learn more about the options and shop different carriers for renters insurance give an agent at The VanDyke Group a call. They can help you make an informed decision based on your insurance needs.
Material posted on this website is for informational purposes only and does not constitute a legal opinion or medical advice. Contact your medical professional or legal representative for information specific to your needs.