Property insurance refers to a series of policies that provide coverage for structures, property, and liability.
What Is Property Insurance?
Property insurance includes renters, homeowners, flood, and earthquake insurance, which all provide different kinds of coverage. Renters insurance, for instance, is financial coverage for 1) damages or losses to your stuff 2) legal fees if you’re sued 3) other’s medical bills if you’re at fault and 4) temp living expenses if your place becomes uninhabitable. Homeowners insurance will cover everything a renters policy does, but also includes coverage for the home itself and any of the structures on the property. Flood and earthquake insurance can be added to a policy or purchased separately.
How does property insurance work?
You can’t actually get a ‘property insurance policy.’ Instead, you’ll need a policy that reflects whether you own or rent your home. A renters or homeowners policy will protect you from sudden, unexpected events (like these named perils), but they won’t cover cases that are considered normal.
For instance, flooding is so common and apt to cause serious damage that most home insurers can’t provide coverage for it. It’s a risk they can’t take. But you can avoid this risk (and sometimes have to) by purchasing a separate flood insurance policy.
Earthquake coverage is also usually not included in a home insurance policy, but in many cases can be added as an addition to your homeowners or renters policy.
Is property insurance the same as homeowners insurance?
Nope. Homeowners insurance is just one kind of property insurance. Like we mentioned above, renters, flood, and earthquake insurance are also considered to be different kinds of property insurance.
How much is property insurance?
The cost of property insurance will depend on several factors, including the property itself, its location, the policyholder’s deductible, and of course, the kind of policy. At Lemonade, renters insurance policies start at $5, and homeowners are as low as $25.