Are you renting or buying your own home? Whether homeowners and renters insurance, you’ll find a Southern Harvest agent who understands your needs and can help you get the most affordable and appropriate insurance coverage available to Georgia residents. We’ll answer all your questions and help you protect your wallet and maintain your peace of mind.
All you need to do is to reach out to us by calling (877) 831-4677. You can also get a quick quote online or drop in at a Southern Harvest Insurance office conveniently located close to your Georgia home.
FAQs About Home and Renters Insurance Differences
Here are brief answers to some of the most common questions on this topic.
Do Renters Ever Need Homeowners Insurance?
No. These are two different forms of coverage. Both will cover your personal property in the insured space, but if you’re a renter, you have no ownership of the building itself, so you wouldn’t pay for a policy to cover losses to the physical structure of the home, apartment, condominium, or other space.
Can Landlord Insurance Ever Substitute for Renters Insurance?
No. Again, these are two totally different types of property insurance for different audiences. Landlord insurance offers financial protection to the individual who owns or manages the space in which tenants are renting. So it covers the physical building as well as liability issues if a tenant or a visitor to a tenant sues, and even financial losses if the rental unit goes too long without a tenant.
Renters insurance, on the other hand, is coverage purchased by an individual who rents space. Renters insurance covers personal property damages or loss, liability, and even the cost of temporary housing if the rented space is lost long-term to fire or other damage. But renters policies don’t cover the physical structure because the renter doesn’t own or have a financial interest in the space.
What Does Personal Property Insurance Typically Include?
Personal property insurance is a benefit available in both homeowners and renters coverage. It covers all personal possessions of the policyholder if they are damaged in a covered event, such as a weather calamity, by fire, smoke, or internal flooding, or if they are lost to theft or vandalism.
In addition to covering all possessions in the living space, personal property coverage often also includes damage or losses to items kept in the policyholder’s car or storage facility.
Is There Any Overlap Between Renters and Homeowners Insurance?
There could be if an individual owns a home and is also renting space in which they live. That might include situations in which a person is moving from a rental unit to a newly bought home and doesn’t want to cancel their renters coverage until the move is complete. That can be a smart financial move.
How Can I Estimate the Right Coverage Amount for My Situation?
Consider a worst-case scenario. A fire comes roaring through your home or apartment and destroys everything. As a renter, simply estimate the replacement cost of everything you stand to lose. Do you have expensive art, jewelry, electronics, or other high value items? Don’t estimate too high, or you’ll be paying for coverage you don’t need. And if you figure too low, your claim might not pay for all that you lose.
Your estimation for the value of your homeowners insurance will be similar, except that it will also include dwelling coverage for the home itself and other structures on your property.
In both cases, you must also decide your deductible, which is the amount you’ll pay out of your own pocket before your insurer kicks in. The higher your deductible, the lower your insurance premium. Bring all of this to the attention of your licensed insurance agent, and they’ll help you set a rate that will protect you but still be affordable. In the meantime read, What Is a Renters Insurance Deductible and How Does It Work?
Is Homeowners or Renters Insurance Mandatory in Georgia?
Yes and no. Neither is mandatory by law, but mortgage lenders will not let you buy a home without having a homeowners insurance policy.
Under normal circumstances, a lender will foreclose on your home if you fall behind or stop paying your mortgage. They foreclose so they can sell your house and make back the money they lost on your loan. But if the property is severely damaged or destroyed, such as by a fire, there’d be nothing for the finance company to take back. By forcing the homeowner to get coverage, the lender can get paid by the insurer after such a disaster.
Similarly, many property owners require renters coverage in Georgia. That prevents the landlord from being sued if the renter can file a claim with their own insurer for an expensive event, such as someone being injured in their apartment or a building fire that destroys their personal possessions.
Does Renters Insurance Cover Medical Payments?
Yes. Renters insurance policies typically include medical payments coverage, which helps pay for medical bills or medical expenses if a guest is injured on the rental property, regardless of fault. This is a valuable protection that can help cover legal fees related to minor injuries.
Check out this blog, for more information about what renters insurance does and doesn’t cover.
Are There Additional Coverages I Should Consider?
Both homeowners and renters insurance policies offer options for additional coverage, such as for high value items like jewelry or art, or separate coverage for flood insurance, which is not typically included. Discuss with your licensed insurance agent about any additional coverage you may need based on your unique situation.
