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Does Rental Property Insurance Cost Less Than Home Insurance?

Posted by: Insurance Place by: June 13, 2016

Does Rental Property Insurance Cost Less Than Home Insurance?

Rental property insurance cost and the cost of home insurance in Californiacan depend on several factors. Although both California rental property and home insurance help protect the place you live, the differences between them are more than “one is for renters” and “the other is for homeowners.”

Before we go into rental property insurance cost, we have to answer an important question: What things does rental property insurance cover?

California Rental Property Insurance Covers Your Belongings, Not the Building Itself

The entirety of your California rental property insurance cost will only cover your personal items. It does not cover your unit. If a pipe bursts in your apartment and drenches your closet, rental property insurance can cover the cost to replace your wardrobe.

It’s the opposite with homeowner’s insurance. A California homeowner’s plan insures the building itself, not your belongings. If a fire damages your home, homeowner’s insurance will cover repair costs. Your personal items, however, won’t be covered. If you want to protect your belongings, you’ll need additional coverage.

How Much Will Rental Property Insurance Cost in California?

Now that you know the difference between them, we can go into how much these plans cost. California rental property insurance will usually cost much less than homeowner’s insurance. That’s because your belongings won’t cost as much to replace as a house would. You value your items quite a lot, but they may not add up to the investment of an entire house. You can, however, get higher deductibles to cover your more valuable items.

Rental property insurance in California tends to have affordable rates. It can provide thousands of dollars in coverage for monthly, quarterly, half-year, and yearly payments. Some things are excluded in California rental insurance – fire, earthquake coverage – which could explain why it’s so low. Adding coverage against fires and other disasters can increase your rates, but that extra coverage can make a difference.

What If You Are Renting a Home?

Renting a home is becoming more and more common these days. So what kind of plan do you need? The home is not a rental property like an apartment or condo, but you aren’t the owner. It can be kind of confusing.

Since you don’t own the home, you don’t need to worry about covering the property. The homeowner is the one who needs to have a home insurance policy. They may offer you renter’s insurance, or if not you can look into getting your own plan.

To find out how much you can expect your rental property insurance cost to be, get a quote. Let the insurance company know what kind of property you are renting, and you should know what you can expect to pay.

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