by Lucie Shores

Created on: September 09, 2009   Last Updated: January 12, 2010

Insurance provides coverage of property, possessions, health and life by an insurance company. The kind of coverage one receives secures the "nuts and bolts" of your life from things like theft, fire, natural disaster and more. Situations differ, in reality,  from person to person, depending on a variety of factors.   In short, not all insurance is created equal so it is important to find an insurance agent you can trust to explain the policies available and the limitations of coverage.

Renters need protection for personal items they bring to or install in rental property. Things like furniture, clothing, appliances, electronic equipment, and anything else of value are not normally covered by landlord's insurance policies. Renters insurance generally insures personal possessions if they are affected or destroyed in event of theft, fire, or plumbing losses. Renters insurance can also provide liability protection and other coverage for the renters who may be sharing space with friends or subletting rooms.

In the event of destruction of rental or other property as a result of the actions of a tenant, the renter's insurance company may hold tenants liable, rather than paying the claim, for example. It is best to have a valuation of any personal property that is not easily accounted for, such as an instrument or family heirloom and take care that such items are covered for replacement value, rather than original value when needed.

As a condominium owner, insurance needs may seem similar to renter's insurance, but it is very different in some ways. It is important to understand what the association policies are and what one's obligations are in accordance with them. The fees may include a premium for insuring common areas and property. That means any deductible will be split between all residents of the condominium association, even though claim payments will be made to the association. Depending on whether the policy is "bare walls in" or "all in" a condo owner will need to insure differently. "Bare walls in" means that everything inside the condo is considered the owner's responsibility to insure, including coutertops, bathroom and kitchen fixtures, flooring and anything else built into the condo. If an association policy is "all in" it means the association covers everything built into the condo and the condo owner need only insure personal property or additions made after moving in.

Of course, details and policies differ from association to association and owners should be aware of any deviation from the meaning of terms as explained here. There may be some crossover in liability, depending on events. If the homeowner is affected by tenant activity, the tenant may be held liable rather than the insurance company of the landlord. When living near rivers, volcanoes, fault lines, the features of an insurance policy dan change dramatically according to the immanent danger on site. If any of these things are extant, it is good to cross all the "t"s, dot all the "i"s by having details spelled out for all parties involved.

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