What does my renter or homeowner insurance cover?

As you check off your to-do list for the New Year, you probably have insurance on your mind. In this article, we’ll cover what Renters and Homeowners Insurance cover, so you can make an informed decision that works best for you and your needs!

Homeowner Insurance

A homeowner insurance policy is typically taken out by the owner of the home. The amount of insurance generally covers both the cost to replace the house in the event of a total loss and any personal property within it, such as furniture, appliances, clothing, jewelry, and dishes! Keeping your valuables and loved ones protected in the face of adversity is as important as ever.

Renter Insurance

Renter insurance is for occupants who do not own the property but want to protect their personal belongings that are in the home or on the property. It’s important for renters to note that the property owner’s insurance policy does not cover them and their items in the event that they are damaged or destroyed. Renter’s insurance policies will reimburse a renter for the replacement cost of property that is lost or damaged while on the property. It can also extend to your form of transportation, covering items stolen from your car or a bike stolen while you were away.

Here are some things to consider:

  • How much would it cost to replace your household appliances, furniture, and clothing? You need enough insurance to cover the basics if you lost everything.

  • Which are your most beloved possessions, and how much would it cost to replace them?

  • How much money would you need, beyond your normal daily expenses, if you can’t live at home for a week or more?

  • How much might it cost if your kitchen is out of commission for a couple of weeks and you have to rely on takeout meals?

  • What personal liability coverage might you need? Do you live on your own? Do you have children? Loved ones to consider? Thinking about possible scenarios will help you decide how much coverage you’d like to have.

When it comes to deciding how much insurance to pay, the main thing to think about is how much your peace of mind is worth. It’s often worth paying a little more to know that you have enough insurance to cover and cope with (almost) anything that comes your way. As the saying goes, it’s always better to be safe than sorry!

Make your insurance process a breeze with the protection of AFI’s Umbrella Insurance, which includes coverage above and beyond your homeowner, personal liability, and auto insurance. Protect nearly everything else with AFI insurance products. Learn more here.