Homeowners versus condo/co-op insurance: What's the difference? - Business Insider

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Homeowners and condo/co-op insurance both protect your belongings, but with homeowners insurance the coverage extends beyond your 4 walls

, which says that this form of insurance doesn't cover "earthquakes, floods, government seizures, mudslides, ordinance updates, sewer backups and sinkholes." Those will require add-on coverage using a rider policy.by the National Association of Insurance Commissioners , the average annual premium in the United States in 2017 was $1,211.

The cheapest price may be okay for a renter. However, if you're a homeowner the cheapest price is probably not the way to go if that means a company isn't responsive when you file a claim. For many homeowners, a home is their biggest asset and homeowners insurance helps protect it. Focus onIf you currently have homeowners insurance, review your policy coverage yearly.

will vary based on the state where you live and whether you are urban or rural. Focus on customer satisfaction rankings, like those from J.D. Power, and comparison shop. This is especially important for those living in disaster-prone areas, when good service can make all the difference.Ronda Lee is an associate editor for insurance at Personal Finance Insider covering life, auto, homeowners, and renters insurance for consumers.

Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners.

 

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