Choose the Right Home Insurance For Your Needs

Whether you rent or own your home, however, there are some things about home insurance that will help you to make a more educated decision:

- Renters

Renter's insurance is inexpensive in most states. Depending on the coverage you need, it will likely only cost you about $50 - $70 yearly. The key to getting renter's insurance that you feel good about having is to do your homework. Often, it isn't how low your insurance premiums are, but how good your coverage is. Just because your landlord has insurance on the property in which you live doesn't mean that everything you own and keep in the property are covered, so you need to make sure that in case of a fire, flood or burglary, you are protected against your losses.

Renters should consider how much their possessions are worth. Now, just because your great-grandmother's teapot is irreplaceable to you, you will need to consider how many dollars would it cost you to purchase something similar. Add it all up, even your dishes and clothing. If there were a fire, how much money would it cost to replace everything that you lost? This is the amount of coverage you will need.

Take pictures and list anything that is significantly expensive. Your insurance company will give you guidelines, but this is a very important step because it will help make all your claims go smoother. This is the time to consider expensive items valued at more than $10,000. Many home insurance companies suggest that you take out a rider on your current home insurance policy to cover very expensive items.

When you're shopping for renter's insurance, remember that many insurance companies offer multiple policy discounts. If you are happy with your auto and life insurance, consider getting your renter's insurance through the same company. Chances are, you will get a great discount.

- Homeowner's

When you buy a home, your lender will require that you have insurance on the property. Your lender will require that the home be insured for at least as much as you owe on it and it will have to cover the structure and contents.

Insure yourself against getting sued if someone gets hurt on your property. Liability is included in homeowner's insurance. Many insurance agents recommend that you insure your possessions for about as much as the value of your home, with very expensive items covered on a rider.

When you're shopping for homeowner's insurance, it will probably be paid out of your escrow, so it's likely that your mortgage payment will be affected. Depending on the cost of your home, your insurance can sometimes be more or less than you anticipated. It's important to choose an insurance company who has a good claims record. Raising your deductible will likely lower the yearly cost of your home insurance.