When you buy a home acquiring a proper homeowner’s insurance policy is an important step in homeownership. Homeowners insurance New York can help keep you, your home, and your possessions safe. If you’re moving from renting to owning there are going to be some changes and one of these is the nature of your insurance policy. If you’re familiar with renter’s insurance, you will recognize some coverage terms and types. However, as you are now an owner instead of the renter there are differences you should be aware of.
How Renter’s and Home Insurance are Alike
Renter’s and homeowner’s insurance policies do have some degree of overlap and if you’ve had renters’ insurance you’ll likely have no issues with these familiar types of coverage. Homeowner’s insurance covers your personal property, additional living expenses if your home is rendered uninhabitable and requires repairs, medical payments for injured third parties on your property, and liability due to accidents or neglect. The figures used for calculations can differ and often make use of dwelling coverage as a base figure. For example, for many policies, personal property is often calculated at 50 to 70 percent of dwelling coverage, and living expenses are often calculated at 20 percent of dwelling expenses. Like renter’s insurance, homeowner’s insurance often has flat figures for medical and liability coverages.
How The Two Types of Insurance Differ
The key difference between homeowner’s and renter’s insurance is that a homeowner’s policy covers the home itself and other onsite buildings such as a shed. When renting property, any repairs or upkeep of the building itself is not your concern, so a renter’s policy does not consider that. A homeowner’s policy should have coverage levels to replace the home in case of a total loss or perform common repairs such as installing a new roof. Homeowner’s policies also cover attached structures such as an attached garage or porch. Common causes of homeowner’s claims include hail, wind, fires, storms, and other natural disasters.
The Necessity of Insurance
Having insurance is, in general, a good idea as you cannot predict the future and random occurrences such as break-ins or wind damage to your roof due to a sudden storm can put you in a financial bind without assistance. However, unless you have a high degree of resources available (and can buy a home outright) you will likely have a mortgage, and insurance may not be a choice. Most lenders will not agree to a mortgage without a homeowner’s insurance policy being included as part of your obligations. However, even if you do own your home, having an insurance policy is still advisable to help cover unexpected emergencies and repairs.
Insurance can give you peace of mind and ensure both your possessions and your investment if your home is covered. Like other types of insurance, homeowner’s policies can offer varying levels of coverage and specific add-ons to fit your needs. When buying insurance for your home, you should always consider your unique situation, and if you are unsure about what you need, an insurance company representative or agent can help.