Renters Insurance vs. Homeowners Insurance (2024)

FAQs

Renters Insurance vs. Homeowners Insurance? ›

Key Takeaways

The main and most obvious distinction between renters insurance and homeowners insurance is that a homeowners policy safeguards the home's physical structure against covered perils while renters insurance won't protect the home or building occupied by the tenant.

Homeowners and renters insurance are similar. Both cover your personal property (your belongings) for problems like fire and theft. And they both cover you if you are responsible for damages to someone else.

Homeowner's insurance covers the residence. Renter's insurance only covers the belongings in a residence.

Renters insurance protects your belongings from loss, damage, or destruction following things like burglaries, fires, tornadoes and other covered events. Plus, renters insurance also protects your liability (and your money) if someone is injured at your rental home or apartment.

Renters insurance typically covers fire, windstorms, lightning, explosions, theft, and vandalism. Your personal property, personal liability, additional living expenses, and guest medical expenses are usually covered under your renters insurance.

Expert-Verified Answer

The primary difference between renters insurance and homeowners insurance is that homeowners insurance covers damage to the home itself in addition to personal belongings, while renters insurance primarily covers the personal belongings, not the building.

Key Takeaways. Homeowners insurance covers the building you live in and associated structures such as garages. Most lenders will require you to take out homeowners insurance when taking out a mortgage. Renters insurance is for tenants to cover liability and their personal property.

Does homeowners insurance cover theft from a home? Typical homeowners (including renters and condominium) policies include coverage for your personal property. Loss due to theft is generally included as part of the personal property protection.

What is someone typically a child who relies on you financially? ›

A dependent is someone who relies on another person for financial support. Typically, this includes your children or other relatives. It can also include people who aren't directly related to you, such as a domestic partner.

On homeowners, renters, or condo policies, your property and belongings may be insured for either your property's actual cash value (ACV) or replacement cost value (RCV). Replacement cost value is the amount it will take to replace your property or belongings without any deduction for depreciation.

A tenant is most likely to purchase renter's insurance to protect their personal belongings and liability.

Renters insurance coverage is almost always worth it. It is much more affordable than other policies, including home or auto insurance, and provides valuable financial protection. Even if you can save enough money to cover unexpected loss, renters insurance may be worthwhile.

Homeowners' insurance is a specific type of property insurance. Homeowners' insurance covers damage or loss by theft and against perils which can include fire, and storm damage. It also may insure the owner for accidental injury or death for which the owner may be legally responsible.

The most important aspects to consider in homeowners or renters insurance are personal property coverage, liability protection, structural coverage (for homeowners), additional living expenses, deductibles, policy limits and exclusions, potential discounts and bundling, and the reputation and service of the insurance ...