No matter where you live, you should consider insurance to protect your home and belongings. A flood, fire, earthquake, or other natural disaster could happen at any time and take away everything you own—resulting in losses exceeding hundreds of thousands of dollars. While homeowners or renters insurance is not required, they offer protection and peace of mind. What is the difference between homeowners insurance and renters insurance?
Key DifferencesWhen it comes to homeowners insurance vs. renters insurance, the main difference is what is covered. If you rent a place, then you will want renters insurance, which will cover the following:
- Your belongings from theft or damage
- Liability in case someone is injured on your property
- Living expenses if your dwelling is uninhabitable
- Value of the home
- Age of the home
- Risk of natural disasters