Renters Insurance vs Homeowners Insurance

renters vs homeowners insurance
Renters insurance vs homeowners insurance differ with what and who is covered.

Insurance is a form of protection for the policy holder when the unexpected happens. The insurance policy holder pays a premium to the insurance company. In exchange, the insurance company pays or provides coverage to the policy holder in the event of a covered loss. When it comes to renters insurance vs homeowners insurance, some primary differences include who and what is covered.


Homeowners insurance typically covers the home and its contents. The policy holder is the owner of the property. Coverage usually includes the cost to replace the home in the event of a total loss as well as the value of the contents in the home. Contents in the home is known as “personal property”. Property owners are not obligated to have homeowners insurance except when required. For example, mortgage companies usually require homeowners insurance. So if the homeowner has a mortgage on the property, then they will need to purchase such insurance.


When it comes to a rental situation, there is the property owner and the tenant. The landlord would have property insurance (aka landlord insurance) to cover the physical property. Tenants would have renters insurance to cover the value of their personal property. The property owner’s insurance policy on the rental property does not cover the tenant or the tenant’s belongings. Renters insurance will also cover tenants in a covered event (like water damage) requiring temporary relocation (like a hotel) or if they are liable for a visitor’s injuries while on property.

The primary differences when it comes to renters insurance vs homeowners insurance are that homeowners insurance also covers the physical building. Both insurances cover personal property and provide liability coverage. Homeowners are the policy holders of homeowners insurance. Tenants are the policy holders of renters insurance.