Often renters don't feel they need homeowner's insurance.
They believe that if a theft or fire should occur, the building's owner will have all the insurance that is needed to cover the loss.
Granted the owner will likely have insured the building, but not the contents.
Renters in Montana have two choices when it comes to affordable homeowner's insurance.
They can purchase either a replacement cost policy or an actual cost policy.
The actual cost policy is generally a little less expensive only because the claim will be paid based on the depreciated value of the items.
Replacement cost policies cover the cost of replacing everything you own with new items.
Homeowners also need to decide between these two types of coverage for the contents of their home.
In addition, they will be buying coverage for the building itself.
The premium cost for this depends on the age and condition of the home as well as what types of safety features are in the home.
If you decide to purchase an older home you should be aware of the fact that it may actually cost more to insure than a brand new home.
The reason isn't in the replacement cost but instead lies in the construction of the home.
Older homes are often equipped with out of date wiring and plumbing.
These are seen as hazards to insurance companies and they result in your home being labeled high risk.
The ensuing higher premiums can be avoided if some work is done to bring the home up to today's codes.
Just keep that in mind if you do have your heart set on a turn of the century home.
Also installing dead bolt locks on the doors is a positive.
Insurance companies have to pay out a great deal of money on theft claims each year.
If you show your insurance company that you've taken extra steps to deter break-ins, they'll likely offer a reduction on your premiums.