What a homeowner's insurance does not cover?
Floods and earthquakes are major enough to require their own separate policies. They’re almost never included in dwelling coverage. If you live in a flood- or earthquake-prone area, you can get additional coverage for a cost.
And insurance providers won’t cover homeowner neglect: damages that could have been prevented by basic maintenance and upkeep.
Policies also don’t extend to government demolition or power failure (if the power source is outside of your residence).
What a renter's insurance does not cover?
Since renters don’t own the buildings they live in, their insurance won’t include dwelling coverage, which means it won’t pay for structural damage to the building.
As with homeowners policies, renters’ personal property compensation is limited to “covered events” or perils listed by the insurance company.
And unless you’re married or living with your family, a renters insurance policy will only cover the belongings and liability of the person who pays for it. If you have roommates you’ll need to get separate policies if everyone wants coverage.
In next blogpost, we will discuss which insurance is right for you.