How Are Renters Insurance and Homeowners Insurance Different?

Whether you own or rent your home, it’s essential to understand how insurance can financially protect you from the unexpected. While renters and homeowners insurance are similar, there are some key differences to review.

Renters Insurance Basics

Renters insurance is specifically for tenants who rent their residence. Whether you are renting an apartment or a house, it is still considered renters insurance. It is not legally mandated; however, your landlord can include it as a requirement in the terms of your lease. This insurance typically offers coverage for your personal property and coverage for potential liabilities. Renters insurance can also include additional living expenses coverage, which can help cover the cost of living elsewhere while your residence is being repaired due to a covered event. It’s important to note that renters policies do not cover the structure of the building itself, which the landlord’s insurance policy should cover.

Homeowners Insurance Basics

Homeowners insurance is designed for homeowners to protect their investment financially. It is not typically legally mandated, but it may be a requirement when working with a mortgage lender. Homeowners insurance typically includes coverage for the physical structure of the home, personal property, liabilities, other structures on your property and for additional living expenses.

The Main Difference of Renters and Homeowners Insurance

The main difference between renters and homeowners insurance is how the structure of the building is covered. With homeowners insurance, the structure of the home is covered by the homeowner’s policy and for renters, the landlord’s policy covers it.

Learn More

Contact Wilkinson Insurance Agency today to discuss the nuances of renters and homeowners coverage. We can make sure you are covered, no matter which kind of resident you are.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.