When A Home Is Not A House

There are lots of types of “homeowner” insurance:
The kind you have when you own a single house
The kind you have when you own a multi-family dwelling (duplex, etc) and live in the house
The kind you have when you own a townhouse or condo
The kind you have when you rent a house or apartment
The differences between the policies for the homes listed above are important, but a lot of the coverages found in the policies are for the same things. The trick is knowing when to apply which one.

Let’s say your parents are selling their home and moving into a retirement or assisted care facility. They will no longer need homeowners insurance. Correct? The answer: No. No because of all of the other “stuff” found in a good homeowners policy. The type of coverage your parents now need is renters insurance (or condo insurance if there is a financial interest in the unit). This would protect your parents by:

Covering their personal property in case of fire, smoke, water, theft, etc
Covering their personal liability concerns if there was any kind of an accident for which they were responsible
Covering their stay in a different facility if their current residence was made uninhabitable due to fire, etc.

Insurance coverage wise, a roommate situation is somewhat the same. One roommate has insurance, the others assume they are covered by it. They are not. Or, someone owns the house and has roommates. Those roommates think they are covered under the homeowners insurance. They are not. The roommates need renters insurance for their own property and liability concerns. The homeowner could require it so there would be liability coverage for the renter if there were any kind of an accident for which the renter were responsible.

Renters insurance is more affordable than you might think and can be purchased at any time. Just call us to find out what it’s all about. We look forward to talking with you. 800-659-7363.