Mastering your move and finding a good place for your family to live can take a lot of time and energy, so something like home or renters insurance could be overlooked. However, this small task could save you big money if something happens to your belongings. Military OneSource offers this quick look at home and renters insurance options.
Distinctions
A home insurance policy protects your home’s physical structure and your belongings in the event of damage or loss caused by disaster or theft. Most home insurance policies also provide personal liability coverage in case someone is injured at your home or by household members. For instance, if a visitor were to fall down your stairs, your home insurance policy may cover medical expenses.
On the other hand, Renter’s insurance is property insurance specifically designed for people who do not own their homes. If disaster strikes in the form of fire, vandalism, theft or any other way, renters insurance means you won’t be stuck paying to replace everything lost or damaged.
Types of renters insurance
There are two forms of renters insurance: broad and comprehensive. The broad form is the more limited and less expensive option. It is also the most common form and usually offers coverage for specific events named in the policy—typically fire, lightning, explosion, smoke, vandalism, theft and water-related damage from utilities. Broad coverage can also provide personal liability protection against lawsuits if someone is accidentally injured in your home. It does not cover floods and earthquakes.
The comprehensive form covers everything that isn’t explicitly excluded by the policy. It will probably provide a higher personal liability limit and cost more.
Value of coverage
If you are a homeowner, home insurance is a must. Your home is too large and important an asset. In fact, many mortgage companies require home insurance. Many landlords also require renters insurance, but it’s a smart idea to have it regardless. Replacing all of your personal belongings—like furniture and electronics—would be expensive in the event of a disaster. Renters insurance can help ease that burden.
If you live in government or installation housing, you may have renters insurance included, or you may only be covered for things damaged or stolen from your quarters. Service members living on base in the dorms or the barracks should also consider taking out renters insurance policies to protect their belongings. Some insurance policies will also cover your belongings while in transit. This is a huge benefit to military families who frequently PCS, so make sure you talk to your insurance agent about this possibility.
What’s included?
Typical coverages offered through most insurance plans include:
- Actual cash value insurance policies to cover the cost of your home and belongings.
- Replacement cost insurance policies to replace your home and belongings without depreciation.
- Guaranteed replacement cost insurance for repair, rebuilding and repurchasing costs.
- Personal liability for injury or harm caused by negligence.
- Additional provisions can be added for things such as meals, hotel costs, expensive jewelry, etc.
You’ll want to read the protections carefully before choosing an insurance policy, noting what is and isn’t protected.
Next steps
The Office of Financial Readiness recommends that service members, veterans and their families obtain insurance by following these steps:
- By assessing your assets, determine what type of policy and how much coverage you need. Inventory your home and property, making sure to keep your records in a safe place.
- Document your belongings with photos and videos to aid any future claims. More tips can be found on ready.gov on how to proceed with this process.
- Once you establish how much insurance you need for your home and/or belongings, it’s time to compare costs and policies. Most companies will provide free rate quotes. Carefully review the details to understand what the potential policy covers.
- Look for a policy that provides the coverage you need at premium rates you can afford.
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