Let's understand the difference between the policy of homeowners and renters 21st March 2022
Owning a house is a lifelong dream for most, but it comes with its own set of challenges. Analysing the market, arranging the funds, making remodelling decisions and getting house insurance takes a lot of time and research. However, renting a house is no picnic either.
Looking for the perfect house, checking out the neighbourhood, ensuring safety, inspecting the amenities, budget, shifting, agreements, meeting the landlord, etc., are significant factors that need to be considered before making a final decision.
Whether you are a homeowner or renter, you need to get insurance. Owner's and renter's insurance have different terms and conditions, and the policies are structured accordingly.
Are you confused between the two and find it challenging to figure out their differences? Let's understand the difference between the policy of homeowners and renters with specific pointers to help you find a suitable policy for you.
1. Coverage:
While homeowner's insurance covers the building, garage and other structural amenities, the renter's insurance covers your personal belongings and property. The landlord is supposed to have insurance cover for the building.
2. Coverage cost:
The homeowner's insurance covers the cost of your home in case of a complete loss. Additionally, it also covers personal property like jewellery, appliances, apparel, etc., that gets damaged or becomes completely irretrievable due to the circumstances. On the other hand, renter's insurance only covers the replacement cost for your lost or stolen possessions on the property. It does not cover any damaged or destroyed possessions.
3. Price:
Given the coverage, it is understandable that renter's insurance is cheaper than homeowner’s. This varies due to the renter's insurance's limited scope as compared to the homeowner's.
4. Factors that are considered:
The factors that decide the price of the homeowner's policy include the type of property, the amount of personal property you need coverage for, location, etc.
For renter's insurance, the amount of personal property coverage and the area you live in are considered essential factors determining the price.
5. Other liabilities:
Homeowner's insurance incorporates personal liability coverage. This covers the legal fees if someone gets injured on your property. The homeowner's and renter's insurance cover living expenses if you need alternative accommodation solutions due to house damage, disasters, fire, etc. If you or someone else gets injured in your home, your insurance will cover their medical expenses too.
6. Which one do you need:
Renters need to verify that they get renters insurance, medical coverage and a personal liability policy. Several homeowners take renters insurance to avoid further hassle and disputes about financial loss.
In the case of renting out your property, you need to ensure that the homeowner's insurance has adequate coverage and doesn't lead to any confusion or disputes. You can always check with your insurance agent before renting out your property, whether it's a small space or a lavish villa.
Insuring your home is paramount. Never skip on the benefits that home insurances offer. Browse through different plans and purchase the best house insurance India. Make a smart investment, and rest assured.
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Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.