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

Choosing between renters insurance and homeowners insurance starts with knowing how each one works. Both offer coverage for your belongings and liability, but the key differences depend on whether you rent or own your home.

How Do Renters Insurance and Homeowners Insurance Compare?

There are several differences and some similarities between these two common types of insurance. Consider the following aspects of your situation and coverage needs:

• Property ownership—Homeowners insurance may cover your home’s structure and the contents inside. Renters insurance, on the other hand, does not cover the building. That’s the landlord’s responsibility. Renters insurance focuses primarily on your personal belongings and liability.

• Cost—Renters insurance generally costs less than homeowners insurance since it doesn’t include coverage for the building structure.

• Structure coverage—Homeowners insurance may cover any attached structures like garages and sometimes other structures on the property. Renters insurance doesn’t cover these elements at all.

• Liability coverage—Both types of insurance offer liability coverage, which may help if someone is injured in your home or if you accidentally damage someone else’s property. The amount and specifics can vary depending on the policy.

• Living expense coverage—If your residence becomes uninhabitable due to a covered event, both policies may include loss-of-use coverage. This may cover the cost of meals, temporary housing and other additional living expenses.

• Ownership requirements—Homeowners insurance is typically required if you have a mortgage. Renters insurance may not be mandatory, but many landlords now include it in lease agreements.

Reliable Insurance Agents in Palatine, Illinois

An agent from Contigo Insurance can help you decide which type of insurance fits your living situation. We offer affordable homeowners and renters insurance at affordable costs. Contact us today for a personalized quote.

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.