Everyone needs property coverage
Everyone needs to protect their home and their things from accidental damage and loss. If you own your own home, this is homeowners insurance. If you own a townhome or condo, you'll need a policy very similar to a homeowner's policy, called a condo or townhome owner’s policy. If you are a renter, the policy you'll need is called renter’s insurance.
All of these policies will help you to repair or replace your 'stuff' after an accident. If you are a homeowner, they will also help you to repair or rebuild the physical structure of your home. A 'loss' will be specifically defined in your policy, but most policies cover: fire, wind, hail, collapse, theft, vandalism... in general, things going really, really wrong.
Property Insurance policies cover:
- Contents : Your things. All the stuff that is in your home. However it is important to realize, not of all your things are treated equally in the policy. There are lower limits on some individual items like jewelry, art, furs, and guns.
- Loss of Use: Money to cover living extra expenses, like eating out or living in an apartment, while you are unable to live in your home because of a covered claim.
- Personal liability: Protecting yourself from being on the hook financially for someone else's accident on your property.
- Medical Payments: Guest's medical bills if they are injured on your property
Condo, Townhome, and Homeowners policies then go on to cover your home itself to varying degrees. These 3 types of policies are different in that the legally defined owner of the exterior of the building is different! Did you know that you do not own the outside of your home if you are a condo owner? Your HOA owns the bricks around your front door. You do not have to insure them, but your HOA does.