Renters Insurance vs. Homeowners Insurance: What’s the Difference? 

If you’re renting your home, you might wonder whether you need insurance, and if so, what kind. While renters insurance and homeowners insurance share some similarities, they serve different purposes and offer distinct coverage.

What Renters Insurance Covers

Renters insurance is designed for individuals who lease or rent their living space. It typically includes the following coverage:

• Personal property coverage: This covers your belongings, such as furniture, electronics, clothing and kitchenware, against risks like fire, theft, vandalism and certain types of water damage.
• Liability coverage: If someone is injured in your rental unit or you accidentally damage someone else’s property, liability coverage can help pay legal fees and medical expenses.
• Additional living expenses: If your rental becomes uninhabitable due to a covered event, this coverage helps cover temporary housing and related costs.

Renters insurance does not cover the building’s structure. That’s the landlord’s responsibility.

What Homeowners Insurance Covers

Homeowners insurance is for individuals who own their homes. It includes broader coverage than renters insurance because the policyholder is responsible for the home’s structure and contents. A standard homeowners policy typically offers:

• Dwelling coverage: This covers the physical structure of the home, including walls, roof and built-in appliances, against covered perils.
• Other structures coverage: This includes detached garages, sheds, fences and other structures on the property.
• Personal property coverage: Like renters insurance, this covers belongings inside the home.
• Liability coverage: Similar to renters insurance, this protects against legal and medical costs if someone is injured on your property.
• Loss of use coverage: If your home becomes uninhabitable, this helps pay for temporary living arrangements.

Learn More

Whether renting a studio apartment or leasing a house, renters insurance offers essential coverage. Our agents can help you find a policy that fits your lifestyle and budget. Contact us today for a personalized quote.