Whether you own or rent your home, it’s important to have the right type of insurance coverage. While some home owners and renters may have the minimum basic coverage, there are different types of insurance available to address specific situations. Recent data shows that 93% of homeowners within the United States, for instance, have basic homeowner’s insurance. A certain percentage of these homeowners also have additional policies. More and more renters are also realizing the benefits of having coverage.

A Basic Overview of Homeowners Insurance

A 2016 survey was conducted by the Insurance Information Institute. The results of this survey showed that in the event that their home was burglarized, 79% of homeowners insurance policy holders were aware that they would be covered. When homeowners have standard coverage, there are a variety of disaster-related damages that will be taken care of, according to the Insurance Information Institute. There are, however, a few exceptions where it would be a good idea to have additional policies. While this will usually depend on the location where a home is located, separate flood and earthquake insurance policies may be strongly recommended.

The Insurance Information Institute also underlines the importance of keeping a home well-maintained and in good repair. This is due to the fact that various situations could lead to accidents or disasters, which aren’t covered by standard policies. This is where having liability insurance may be a good idea. This policy may not apply to all situations, however, because home maintenance is the owner’s responsibility. It may be possible to obtain a niche insurance product to protect against normal wear-and-tear for appliances, however.

A Basic Overview of Renters Insurance

The situation is slightly different when you rent an apartment or a house, according to the Insurance Information Institute. In the event that a fire or other disaster occurs, a landlord’s insurance will usually just cover the building or house’s repair costs. Given this situation, it’s important to protect yourself financially by purchasing renters or tenants insurance. More and more renters are realizing the benefits of having insurance coverage. From 2011 to 2016, for example, the percentage of renters that opted for insurance coverage increased from 29% to 41% within just a five-year period.

it’s important to know what renters insurance does provide. When renters purchase a standard policy, it provides coverage for the theft of personal belongings, liability, and additional living expenses should a fire or other type of disaster occur. This is where homeowners insurance overlaps with renters insurance.

Learn More About the Different Types of Insurance Policies

If you’re an existing or prospective home buyer, you may be interested in learning more about what Farmers Homeowner Insurance can provide. In addition to providing standard coverage, Farmers Homeowner Insurance also offers liability coverage. When you’re a renter, it’s important to note that Farmers Homeowners Insurance has policies for tenants. While you may realize that Farmers Homeowner Insurance provides all the above types of policies, Farmers Insurance also offers other types of coverage, such as auto, health, life, and long-term care insurance.