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Home, mortgage, landlords and renters insurance defined

There are different categories of home insurance available to property owners and tenants, and if you are planning to get coverage, it's useful to understand the differences and the options available to you. Here's a rundown of the basic stuff you need to know: home, mortgage, landlords and renters insurance defined.

Home, mortgage, landlords and renters insurance defined

Home insurance can either be: building insurance or a contents insurance. Building insurance is meant to cover your house’s (the structure, walls and the roof) physical structure from damage that can be caused by fire, storm and extreme weather conditions, explosions, or by a third party. Contents insurance is there to cover damage or loss of your belongings and furniture, appliances, jewellery, etc. Most lenders will require a building insurance if you buy a house with a mortgage.

Mortgage insurance covers you in case you miss mortgage payments. Also known as mortgage payment protection, it should be considered if you are going to encounter unemployment, an injury, or a sickness and subsequently lose your source of income. If you are unable to keep up with payments for over a month, then your insurance will start to cover you and make payments. Usually the more money you borrow, the higher the mortgage insurance premium will be. The premium is usually a one-off amount that can be paid in full at settlement.

Landlords insurance is meant to cover people who own and rent out a property. The coverage includes damage to property, people getting injured on the property, and tenants who stop paying rent and the like. Remember that there are cases where accidents are not covered and that liability will fall either on the tenant or landlord.

Renters insurance defined

Renters insurance is very similar to contents insurance, the coverage will protect you from loss or theft or damage to your personal belongings if you are renting a place. The building is insured by the landlord but you, as a tenant, shall be responsible for insuring you own belongings

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