Home Owner's Insurance vs. Renter's Insurance
Written by Yun Yang   



You may be surprised to find that there are many similarities between home owners’ insurance and renters’ insurance. Both types of coverage provide insurance protection for your personal possessions, liability, and additional living expenses when damage prevents you from living at home. However, there are subtle differences. To choose the right one for your house and your property, you may want to examine these differences between the two insurances closer.


Similarities in Home Insurance and Renter’s Insurance
  • Both provide protection for you and your property.
  • Both help you to replace lost personal property as a result of fire or water damage and vandalism and theft.
  • Both provide you with liability protection in case someone is injured while at your home. However, if someone is injured while at your rental property, the landlord may be liable regardless of the cause of the injury.

Differences Between Home Insurance and Renter’s Insurance
  • Dwelling Coverage:  Only home insurance provides coverage for the structure. When you own the home, you need insurance to cover the cost of replacing your home if it is lost in a fire, repairing the home if it is damaged by vandalism, fire, water, or other accidents.
     
  • Personal Property: Your landlord's home insurance policy does not cover you or your belongings. Furthermore, your landlord's policy does not provide liability protection for damage you may inadvertently cause to the building, such as a kitchen fire or plumbing mishap. Your renter's policy should focus more on replacing your personal property that might be stolen, damaged, or lost in a fire or flood.

Shopping for Home Insurance and Renter’s Insurance

Many homeowners insurance companies also sell renters insurance, so coverage should be easy to find. When shopping for any type of insurance policy, don't shop based on price alone--make sure that the policy has the coverage you need and that the insurance company you are considering has a good history of paying claims.

For more details about homeowners insurance, please refer to the Insurance Buys – Homeowners Insurance.



 
Last Updated on Wednesday, 16 February 2011 14:16