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Difference between homeowner insurance & renters insurance

by businessian
Difference between Homeowners Insurance and Renters Insurance

The significant difference between homeowner insurance & renters insurance is the house’s physical structure. Renters will be responsible for everything inside the home. And the landlord needs to cover any damage to the building with their homeowners’ insurance. And also, homeowners insurance is way too expensive than renters insurance.

Who Buys homeowner insurance & renters insurance?

Homeowners Insurance
This insurance is brought by someone who owns a property. Apart from covering the house, it also covers liability protection when you want to give the place for rent. A landlord must get insurance for the home before giving it to anyone since this homeowners insurance protects the landlord from risks like thefts, fire, or any such issues. It also covers the damage to any property, including rental income coverage. However, both parties must understand their insurance coverage for adequate security for unexpected events.

Renters Insurance
People who rent houses will buy renters insurance since they don’t have their property, so they don’t even have responsibility for the physical structure of the place. But they must protect their properties like furniture, electronics, and other belongings against damage. Another reason why it is essential is you need to submit your insurance proof to the landlord as a part of the lease agreement. For people who cannot afford more than extensive coverage, getting renters insurance for the beginning is a great idea.

Costs of homeowner insurance & renters insurance

The costs of both insurance are very different since there is a variety of coverage. Homeowners’ insurance is more exclusive than renters insurance. Homeowner insurance is based on various factors, such as the house’s location, the time the property was bought, and the house’s credit history. The renter’s insurance is based on the type of insurance you select, where you rent the house and the coverage they need.

Buying the homeowner insurance & renters insurance

Before buying any insurance, you need to know the value of your properties. Property coverage is divided into different factors: one that will affect the cost of the insurance policy is choosing the relevant dwelling coverage, and another is personal property coverage. When discussing personal property coverage. Getting the right balance of value and range is crucial. And when you set a dwelling coverage. It should be above the house’s replacement to cover all the total loss that happened.

But also, you need to keep the market and replacement values in mind. Market value is the selling price of your house based on the rates of places in the market, locality, and other costs. Replacement costs are considered when the house is bought, and it means the quality of the house and also different other ways to estimate the replacement cost.


In conclusion, homeowners’ insurance is designed to cover the house, the things in the house, and the liability protection. Renter’s insurance covers personal belongings such as furniture, temporary living expenses, and liability. But both insurances are peace of mind since they cover the unsure accidents or events that can have tremendous damage. Both are a good idea depending on the type of situation you are in and what suits you.

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