Homeowner’s Insurance vs. Renter’s Insurance (The Differences)

At Tatum Insurance LLC, we are an independent agency representing multiple carriers. We work for you, not the service providers. With us, you are spoilt for choice because we have multiple coverage options at friendly prices.

With our extensive knowledge in the insurance industry and connections to top-rated insurance service providers, we will find the best value for your dollar and adequate coverage.

Homeowners insurance and renters insurance are policies that provide financial protection to policyholders in times of need. The main difference between the two policies is the type of property damage they cover.

Homeowners Insurance

Homeowners insurance is meant for people owning the property they occupy. This insurance policy provides coverage against the structure of the property itself, including:

  • Personal belongings
  • Additional cost of living outside your home
  • Medical payments for other people injured in your premises
  • Legal liability cost
  • Renters Insurance
  • Renters Insurance is bought by tenants who are renting houses or apartments they live in. This policy will protect you against:
  • Fire
  • Theft
  • Medical payments
  • Additional living expenses outside your home

Renters insurance will also cover some personal properties outside your home. For instance, it covers your laptop if it is stolen while you are on vacation. If a broken pipe in your rented apartment spilled water into your neighbor’s house below and damaged their expensive carpet, your policy will reimburse your neighbor for the damage.

However, renters insurance will not provide coverage for damages and loss above your policy’s limit.

What Is the Main Difference Between Homeowners Insurance and Renters Insurance?

These two insurance policies are mostly the same. However, homeowners’ insurance includes dwelling coverage. That is to say that it protects the building’s structure while renters insurance does not.

So as a homeowner, you would need homeowners’ insurance to cover the building and your personal belongings. Homeowner’s insurance has five main types of coverage:

  • Dwelling coverage
  • Personal property
  • Personal liability
  • Additional living expenses
  • Medical payments

Renters insurance will have the above coverage types, excluding protection for the dwelling.

Dwelling Coverage: Included in the homeowner’s insurance

The structure of the home is referred to as the dwelling. Dwelling coverage will protect your home against physical damage to:

  • Floors
  • Walls
  • Roof
  • Ceilings
  • Doors
  • Windows
  • Homeowners insurance usually provides coverage against perils that may occur in your home. These perils may include:
  • Trees and falling objects
  • Weight of snow and ice
  • Theft
  • Vandalism
  • Civil unrest
  • Explosions
  • Lightning
  • Fire
  • Smoke
  • Windstorms
  • Hailstorms etc.

Your specific homeowner’s policy determines whether all these perils are included. Some hazards, such as floods and earthquakes, are excluded from limited policies such as the HO-1. The HO-3 dwelling policy provides coverage for most perils.

Remember that homeowners’ insurance will also provide protection up to the maximum limit of your policy.
It is advisable always to remember to check your policy limit, whether you are a homeowner or a tenant. If you need to extend the policy amount limit, that can be done