Homeowners Insurance, Renters Insurance, and Condo Insurance

If you own a home, you most likely carry homeowners insurance, as all mortgage companies require it.  Most mortgage companies will also require that you carry flood insurance if your home is located in a designated flood zone.  The homeowners insurance policy covers your home (the structure), any other structures (such as a shed, pool, fence), your personal property (anything you would put into a moving truck if you were to move out), loss of use (in the event of a covered claim, the insurance company pays you to relocate), liability and medical payments (someone is injured on your property).  

There are also endorsements that can be added, and should be, such as replacement cost of your personal property and guaranteed replacement cost of your dwelling.  Others are recommended, such as identity theft protection and certainly sinkhole coverage if you are situated in a county that is prone to sinkholes (such as the Lehigh Valley).

Condo coverage covers your personal property in the same manner, however, of course, with a condo, you are not responsible to cover the building shell.  All associations are different and the documents should be reviewed.  Often the unit owner is responsible for any interior damage to the walls, carpeting and appliances.  All unit owners should purchase building improvements and loss assessment coverage.

Renters insurance provides coverage for your personal property, loss of use, liability and medical payments.  This is often overlooked by tenants, however, if there is damage to your apartment due to fire, water damage (other than flood), etc, your personal property is not covered unless you have purchased a renters insurance policy.

Also be mindful that there are limitations under these policies.  Flood is not covered, nor earth movement.  Jewelry, fine arts, etc. should be discussed with your agent as well, as coverage is very limited for these special items.