Other Residential Insurance Policies
Article 4 in 12 on Home Insurance
Other Residential Insurance Policies
Not a homeowner? Here's something just for you! If you own a condo, townhouse, mobile home or farm - or even if you're just renting - you still need insurance coverage. After all, a disaster can happen to anyone, not just a homeowner.
Renters Insurance
Your landlord's insurance does not cover a renter's personal property. If you are a renter, you must buy your own renters insurance to cover your belongings, provide yourself with liability protection, and to pay for additional living expenses if you need to temporarily relocate due to a fire or other insurable peril.
Condominiums
Condominium insurance is the same as renters insurance, but also covers damage to improvements, additions, and alterations to the condominium unit.
Townhouses
Townhouses may be insured by an individual homeowners policy or they could be covered by an association master policy. If a townhouse is owner-occupied and the townhouse association does not have a master policy, you need to purchase your own homeowners insurance policy.
Mobile Homes
Mobile homes without wheels or on a permanent foundation qualify for a homeowners policy in the exact same way a regular home qualifies. However, most mobile homes are insured by a mobile owner's policy which is actually an auto policy. These policies offer extremely limited coverage.
Farm and Ranch Owners
Farm and ranch owners policies insure homes outside city limits on land used for farming and raising livestock.
Other Types Of Insurance You May Need
Flood Insurance
Homeowners insurance policies do not cover flood damage. If you live in a special flood zone are, you will be required to purchase a flood insurance policy from the National Flood Insurance Program (NFIP) administered by the Federal Emergency Management Agency. Check out www.floodsmart.gov.
Hurricane and Windstorm Insurance
If you live in a hurricane-prone area, you may need this insurance coverage. In Texas, for example, the Texas Windstorm Insurance Association (TWIA) is the states insurer of last resort. TWIA provides wind and hail coverage when other insurance companies deny homeowners. When a hurricane enters the Gulf of Mexico, you cannot purchase windstorm coverage.
Earthquake Insurance
It only stands to reason that you don't need to buy this additional coverage unless you live in a place plagued with earthquakes.
Additional Property Coverage
There are several different kinds of additional property coverage you can add to your base home insurance policy. Some homeowners insurance policies may provide coverage for expenses such as the removal of debris (damaged trees and shrubs), fire department service charges, property removal, collapse of buildings and glass breakage caused by an insurable peril.
If you have assets that you want more protection for or you want more liability protection than a standard homeowners insurance policy provides, you can purchase a Personal Umbrella Liability Insurance.
Most standard homeowners insurance policies do not cover the additional cost you will be facing due to higher costs from new building codes. In most cases you can buy "Building Code Upgrade-Ordinance or Law Coverage" as an addition to your policy.
