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Homeowners’ vs. Renters’ Insurance

Learn more about the differences between Homeowners' insurance and Renters' insurance

Whether you own your home or rent your property, you need to protect it with insurance. Homeowners’ insurance and renters’ insurance seem pretty self-explanatory from their names, right? If you own your own home, you need homeowners’ insurance, and if you rent your property, you need renters’ insurance, but there are a few differences in how these insurance policies work and what they cover.

Homeowners’ insurance covers everything from the structural property itself to its contents. For renters, the landlord must ensure the property itself, while renters’ insurance covers the home’s contents.

Homeowners’ Insurance

Homeowners are responsible for their home’s maintenance and any repairs or damages to its structure and belongings. The dwelling or structure itself is covered under homeowner insurance policies which means any damages or repairs needed on the structure or the inside of your home, your insurance covers.

Homeowners’ insurance also covers any personal liabilities like injuries or accidents on your property. For example, if someone were to slip on the steps of your home and injure themselves, it would protect you from any liability.

Depending on your policy, homeowner insurance also provides temporary relocation expenses if your home becomes unlivable due to any circumstances. But keep in mind that homeowners’ insurance does not cover any damages or repairs if you could have prevented it by regular maintenance and upkeep under homeowner neglect.

Also, natural disasters such as earthquakes and floods are not covered under homeowner insurance. To be protected against natural disasters, you would need separate policies for different natural disasters.

Homeowners are responsible for repairing damage to their home and its structure. Because renters don’t own the property, the landlord is responsible for the building and common areas. Homeowners’ insurance protects the home and structures under dwelling coverage.

Renters’ Insurance

The landlord is responsible for the building or home’s structure if you rent. However, the belongings inside the house are still the renter’s responsibility. Renters’ insurance covers all your belongings from damage and unexpected events like thefts. This coverage depends on your policy but usually goes up to $30,000 of coverage.

Renters’ insurance also protects you from personal liability in case of accidents or injuries in your rented property. Depending on your policy, renters’ insurance also provides a ‘loss of use policy, which offers you temporary relocation or accommodation if your rented property becomes unlivable.

Unless you live in your rental with a family, renters’ insurance only covers your own personal belongings. This means if you have any roommates, they would require a separate renter’s insurance to protect their own belongings. Also, most renters’ insurance policies don’t protect and cover special items like jewelry, wedding rings, artwork, or cameras.

Cost Differences

Coverage isn’t the only thing that differs in these policies. The most significant difference is the cost. Homeowners’ insurance is much pricier when compared to renters’ insurance. This is because homeowners’ insurance covers the cost to repair, replace, or rebuild your home, which costs a lot more than just replacing your personal belongings.

On average, the cost of homeowner insurance policies is around $104 monthly, depending on how much coverage you require, and renters’ insurance is about $15 a month. These prices vary a lot and rely on factors like the location and size of your home, your credit score, and whether you own pets or not.


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