What’s the Difference Between Renter’s Insurance and Home Insurance?

If you’re looking to keep your property and your personal belongings safe from harm, having the right insurance policy is of the utmost importance. However, it can be difficult to find the right type of insurance if you’re not sure which policies or insurance companies you should be looking for.

One source of confusion for many is the difference between options like homeowners insurance and renters insurance. If you’re trying to figure out what you need to keep your personal property safe, let’s take a closer look at the two and how they differ!

What’s homeowners insurance, and what type of coverage does it offer?


Homeowners insurance is a type of policy that covers a wide variety of potential damage to your new home. Whether this comes in the form of property damage (floods, fire damage, natural disasters, etc.), vandalism or theft, or even personal injuries that take place on your property, a great home insurance company will provide you with comprehensive coverage to safeguard you from all three. If you’re planning on acquiring a mortgage to afford your new home, a lender will make it mandatory for you to have a policy in place (or purchase one for you).

That being said, this type of policy can be difficult for homeowners to navigate as there are many different additions you may wish to purchase so as to better protect your home. If you know that you need homeowners insurance, use an online tool that can help you find and compare home insurance companies and plan in your area. No matter what type of coverage you need, you’re sure to find a home insurance plan that is both affordable and high-quality.

What’s renters insurance, and what type of coverage does it offer?

Aptly named, renters insurance is designed specifically for those who are renting out apartments or homes. Whereas homeowners insurance is designed to protect your property as a whole, renters insurance is aimed specifically at covering personal items that may have been lost during a disaster or other event (as well as additional living expenses and liability protection).

Why? Generally, your landlord will have their own home insurance coverage to tackle damage to the actual property or liability claims made by those who have been injured on their property. Renters insurance is simply meant to protect you, not the person who has made an investment in the property and is currently renting it out to you. It’s a must that you make sure your landlord has this before you begin renting any property.

What’s the difference between the two insurance policies?


Put simply, homeowners insurance is focused on protecting the property and its residents from any type of legal or physical harm that it may encounter, whether that comes in the form of property damage, missing or stolen belongings, or personal injury. Renters insurance is essentially a simplified version of home insurance that keeps the personal property of renters protected without having to purchase additional coverage for the property itself (as your landlord should have these policies already). If you own a property, you need home insurance. If you rent a property, you need renters insurance!

Finding the right type of insurance to keep you and your dwelling protected is the best way to avoid out-of-pocket costs in the future. However, it’s not always clear exactly which type of policy you need to acquire. This is especially true if there are multiple policies that sound similar in nature. If you’re trying to figure out whether you need home insurance or renters insurance, dive into the guide above to learn more about each and the crucial difference between the two!