When purchasing home insurance, there are going to be differences depending on whether or not you own the home. If you’re a homeowner, you need to get a homeowners insurance. On the other hand, renters need renters insurance. While a renter typically won’t have homeowners insurance, a homeowner can have an existing homeowners insurance for the house where a tenant lives.
Both the renters and homeowners insurance is unique in their own ways. A renters insurance will only cover the personal belongings of the renter, not the physical structure of the home he or she is renting. Homeowners insurance can cover both the personal belongings of the homeowner and the physical structure of the home. With that said, if the homeowner is living in the house on the insurance policy, both the structure and the personal belongings such as furniture, clothes, and electronics will be covered.
Costs at a glance
Since homeowner insurance will cover the structure of the house in addition to personal belongings, it costs more than a renters insurance. You can expect to pay about $1,300 to $3,000 for a homeowners insurance annually. The national average for a homeowners insurance is about $2,300.
As for the renters insurance, expect to pay significantly lower than $2,000. Sure, the coverage amount and what’s covered can have a huge impact on the annual premium but overall, renters insurance is about $400 to $600.
Given both insurance isn’t mandatory to have, you can live without one. However, we suggest getting one even if the coverage is very little. $2,000 a year for insuring your whole home or $500 for insuring your personal belongings is a such a great deal.
Both the renter and homeowner insurance will protect you against theft, fire, vandalism, burglary, and natural disasters (mostly excluding floods). With that said, there isn’t much of a difference between the two. If you don’t know the coverage you need, figure out the needed coverage by reading our articles linked above individually.