Your home is one of your most valuable assets, and protecting it with the right insurance coverage is crucial. While standard homeowners insurance provides essential protection, it doesn’t cover everything – especially flood damage. Additionally, renters should also consider insurance to safeguard their personal belongings. Understanding the differences between homeowners insurance, flood insurance, fire insurance, and renters insurance can help you make informed decisions about your coverage.
What Does Homeowners Insurance Cover?
A standard homeowners’ insurance policy typically covers:
- Fire and smoke damage
- Windstorms and hail
- Theft and vandalism
- Some forms of water damage (such as burst pipes)
However, homeowners insurance does not cover flood damage from rising water due to storms, moving water, overflowing rivers, hurricanes, or mudflows. That’s where flood insurance comes in.
What Is Flood Insurance?
Flood insurance is a separate policy designed to cover:
- Structural damage to your home from flooding
- Damage to electrical and plumbing systems
- Appliances, heating/cooling systems, and flooring
- Personal property (depending on coverage)
Flood insurance is the only type of policy that covers damage from floods, moving water, or mudflows. It is required for homes in high-risk flood zones, but even homes outside these areas can benefit from coverage, as floods can happen anywhere.
What About Fire Insurance?
Fire damage is typically covered under homeowners insurance. This includes damage caused by accidental fires, electrical malfunctions, or kitchen fires. Policies generally cover the structure of your home, as well as personal belongings damaged by fire or smoke.
For renters, a renters insurance policy covers personal property damaged by fire, but does not cover structural damage to the building itself. Repairing fire damage to the rented structure would fall under the landlord’s insurance policy.
Why Renters Insurance Matters
If you’re renting a home or apartment, your landlord’s insurance only covers the building itself – not your personal belongings. That’s why renters insurance is essential. A renters insurance policy typically covers:
- Personal belongings (furniture, electronics, clothing) in case of fire, theft, or certain types of water damage
- Liability coverage if someone is injured in your rental unit
- Additional living expenses if your rental becomes uninhabitable due to a covered event
Renters insurance is usually affordable and provides peace of mind that your belongings are protected against unexpected disasters.
Key Takeaways
- Homeowners insurance covers fire damage but not floods.
- Flood insurance is a separate policy required for homes in high-risk areas and is the only type of policy that covers moving water, rising water, or mudflows.
- Renters insurance protects personal belongings and offers liability coverage.
- Review your policy regularly to ensure you have the protection you need.
By understanding the differences between these types of insurance, you can make sure you and your home – whether owned or rented – are properly protected.
Peoples Insurance is unique because we are an independent agency with small-town accessibility but the big-business capabilities of a national provider. If you’re unsure about your coverage, meet with one of our local insurance agents to discuss your options and ensure your home is fully protected.
Meet with one of our insurance agents today!
INSURANCE PRODUCTS ARE NOT FDIC INSURED; NOT A DEPOSIT; NOT GUARANTEED BY PEOPLES BANK; NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY; MAY LOSE VALUE.
