Homeowners vs. Renters Insurance: What’s the Real Difference?

Homeowners and renters insurance both provide financial protection, but they cover different risks. Understanding these differences can prevent costly surprises.

What Homeowners Insurance Covers

• Structure of the home (repairs or rebuilds due to fire, storms, etc.)

• Personal property loss or damage

• Liability for injuries on your property

• Additional living expenses if your home becomes uninhabitable

What Renters Insurance Covers

• Personal belongings (furniture, electronics, clothing)

• Liability protection if someone is injured in your rental

• Temporary housing costs if your rental is damaged

Why Renters Insurance Matters
Many renters assume their landlord’s policy covers them—it doesn’t. Renters insurance is an affordable way to protect your belongings and financial well-being.

Sources: Insurance Information Institute , Consumer Financial Protection Bureau