Get homeowners or renters insurance

Securing your home and belongings is important to your finances. Mortgage lenders typically require proof of homeowners insurance before they lend you money to purchase a home. Renters insurance offers similar coverage, and is generally cheaper than you expect.

• Homeowners insurance covers your home’s physical structure, other buildings on your property (e.g., a detached garage), and personal items. Liability insurance pays if visitors to your property are injured. Many homeowners carry umbrella policies for additional liability coverage. Get replacement coverage (what it costs to replace your home and belongings using current pricing and comparable materials) for your home and belongings.
• Renters insurance safeguards your personal property and protects you from liability claims. This relatively inexpensive policy protects your personal possessions from theft, fire, storms and other damage. Before purchasing, check to see if you are covered under your parents’ homeowners policy. You are not covered by your landlord’s insurance.

Find out if laptops and other electronics are covered by your current insurance. Purchase coverage that pays for you to live elsewhere if your home is so damaged that you cannot live there. Reduce premiums by documenting repairs and replacement costs of the roof, windows, heating and cooling systems. You might get discounts for fire-proofing, landscaping and installing security systems.

Check out the Homeowners Insurance and Renters Insurance topics for more information, and use this Home Inventory Worksheet Download Home Inventory Worksheet to document items of significant value to be covered.

 

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