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Important to Know |
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Standard Policy of
Homeowners Insurance
Important to Know |
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Q1. Own a home without insurance |
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You can legally own a
home without homeowners
insurance. But, if you
finance the purchase with a
mortgage, your lender will
most likely require you to
get homeowners insurance
coverage.
If you living area is likely
to flood or earthquake you
will be required to purchase
flood or earthquake
coverage.
After your mortgage is paid
off, it's up to you if
keeping homeowners
insurance. But canceling
policy is not advisable.
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Q2.
Renter Insurance |
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Renters insurance provides
financial protection against
the loss or destruction of
your possessions when you
rent a house or apartment.
However, destruction or loss
of your possessions is not
usually covered by your
landlord's insurance.
Because renters insurance
covers only the value of
your belongings, not the
physical building, the
premium is relatively
inexpensive.
Like homeowners insurance,
renters insurance also
covers your responsibility
to other people injured at
your home or elsewhere by
you, a family member or your
pet and pays legal defense
costs if you are taken to
court. Your possessions are
covered against losses from
fire or smoke, lightning,
vandalism, theft, explosion,
windstorm and water damage
(not including floods). |
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It also cover your
additional living expenses
if you are unable to live in
your apartment because of a
fire or other covered peril.
There are two types of
renters insurance policies
you may purchase:
- Actual Cash Value
- pays
to replace your possessions
minus a deduction for
depreciation up to the limit
of your policy
- Replacement Cost
- pays
the actual cost of replacing
your possessions (no
deduction for depreciation)
up to the limit of your
policy
A standard renters policy
offers only limited coverage
for items such as jewelry,
silver, furs, etc. You can
consider purchasing a
floater additionally for
property that exceeds these
limits. A floater is a
separate policy that
provides additional
insurance for your valuables
and covers them for perils
not included in your policy
such as accidental loss.
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