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Do I Need Different Coverage for Different Types of Homes?

People rent homes of all types. The rental home you live in might be an apartment, house, condo, townhouse, loft, a duplex or some other type of dwelling. One frequently asked question among renters considering getting insurance policies is whether there are different forms of coverage for different types of homes. The answer to that question is not exactly a yes or no answer, but one that requires just a little bit of explanation. Generally speaking, a renter can carry the same kind of policy with him no matter what kind of dwelling he lives in. There are not specific renters policies set aside for people renting mobile homes, for example.

Renters Insurance Protects Policy Holders

The reason for this quite logical when you think about what a renters policy does and does not cover. It covers the renter and not the rented home. It insures the renters belongings but not those of the property owner. Put quite simply, renters insurance is more concerned with the occupant or occupants of the home than with the home itself. Insurance for the physical structure itself is the domain of homeowners or landlords insurance.

But even though there are not strictly separated policies set aside and earmarked for each of the many different housing options you have to choose from as a renter, the type and characteristics of the home you live in will influence the choices you make as a policy holder in terms of the coverage you carry. This is true no matter whether you rent a small loft in the city or a large ranch home out in the countryside.

Small Lofts or Large Ranches

The specifics of your policy will be strongly affected by the home you live in. For example, a small loft in the city will only require a small amount of furniture to furnish it. More than likely it will only inhabit one or two people. And the ability of tenants to entertain guests will be extremely limited based on the size of the home. Therefore, the characteristics of the loft rental home itself have a direct effect on the need for both personal property and liability coverage in a renters insurance policy.

By contrast, that sprawling ranch out in the country will require much more in the way of furnishings. A finished basement adds even more necessity for personal property to furnish the home. More often than not, these large rentals are inhabited by whole families, so there are usually several people living there at any given time. What's more, a large ranch on a nice piece of property is a great place to host gatherings either with friends or extended relatives. So the opportunity for accidents leading to liability claims is much greater than it is in that little loft in the city. There are no distinct categories of rental policies based on housing type, but the home selection nonetheless does influence policy specifics.

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