You might not think there will come a time when you’ll need both renters and homeowners insurance. You will likely never need these policies on the same property, that’s true. However, times may arise when you need home coverage on one property and renters on another. How can you maximize savings and coverage on these separate policies?
Most people don’t need both types of coverage. However, options for buying both types of coverage simultaneously do exist.
The Similarities of Renters Insurance and Home Coverage
Homeowners insurance and renters insurance are both types of property coverage. However, they differ in the types of properties they cover. Homeowners insurance covers the assets of a home owned (in most cases) by the resident. It can also cover properties someone rents to others. Renters coverage insures a property where the resident holds a lease and pays rents.
The largest difference in these types of coverage are their structural protection component. If you own a home, you own the structure (the building). Yet, you don’t own the building (and often some of the furnishings) in rented properties. Therefore, homeowners insurance will often include structural coverage, while renters insurance won’t. Still, both types of coverage will have similarities, like liability and possessions coverage.
Why You Might Need Both Coverage Elements
You generally cannot own and rent a home at the same time. Thus, most people assume that they’ll never need both types of coverage. When you stop renting and buy a home, you’ll likely switch policies. However, times might still arise to get both types of coverage.
Let’s say your child is going to college. They’ll live in an off-campus apartment. They will likely need renters insurance for their own protection in this property.
Many parents will have a financial interest in their child’s rental. Some might even have to sign as a guarantor on the child’s lease. In this case, it’s often a good idea for both the parent and the child to list themselves as insured on the renters policy. That adds protection for parents' own investment in the rental.
In such a case, you might find yourself needing to carry a home and renters insurance policy. Your insurance agent can better advise you on the appropriate course of action. Often, you can bundle these policies through the same insurer. That might allow you to tap into savings offered by buying your coverage from the same supplier. You might also avoid inconveniences managing coverage, and possible holes in your policies.
If you think you need both renters and homeowners insurance, contact your agent at a location nearest you - Mid-Cities 817-589-0006, Ft. Worth 817-626-3339 or Mansfield/Arlington 817-453-5524. They can help you determine if this coverage will prove necessary.
Also Read: Which Home Require Flood Insurance?