Renters and homeowners alike have options when it comes to protecting your home. Whether it’s water damage or a break-in, unfortunately expecting the unexpected is the only way to prepare. Find out the what the 3 primary types of insurance are for your home and what kind of coverage you can expect from each. Believe it or not, it’s way more affordable and helpful than you might expect.
Renter’s
This is insurance that helps cover the costs of your personal belongings in the case of theft, fire, or water damage in the home you rent. How much you pay per month is determined by answering a few questions on your current living situation, but most individuals will likely pay around $20 a month. (Roommates need to subscribe to their own renters insurance, as the insurance covers each person, not each unit.) Apps like Lemonade are a good option to get started.
Flood
This is insurancefor homeowners that help cover the costs of property loss from flooding, particularly in areas that are susceptible to flooding. This is a federally-backed policy by the National Flood Insurance Program (NFIP), so it is in your best interest to subscribe to flood insurance if you know your home is in a vulnerable area. Insurance costs ultimately depend on if you live in a “low-risk” (lower rate) or “high-risk” (higher rate) area, but the national average of flood insurance is $700 a year.
Homeowner’s
Also known as home insurance, this insurance helps cover damages and losses to a property in the event of an unexpected event like a break-in (burglary, theft), fire, or other natural disasters. Most people who own their home with a mortgage will likely be required to have homeowner’s insurance by their lender. It’s advised to shop around for a rate that works for you (which is also determined on the value(s) of the things you own, and what city/state you live in), but on average the rate is $35 a month for every $100,000 of home value.
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