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

The key difference between homeowners insurance and renters insurance is that homeowners insurance covers the residence structure itself plus the homeowner’s personal property, while renters insurance covers only the tenant’s personal property but not the structure they live in.

Keep reading to learn more about the similarities and differences between homeowners insurance and renters insurance, including who should get each type of insurance, their coverage limitations and costs.

On This Page

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  Are Renters Insurance and Homeowners Insurance the Same?

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  What Are the Key Differences Between Homeowners Insurance vs. Renters Insurance?

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  Does Homeowners Insurance Cost More Than Renters Insurance?

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  FAQs

Are Renters Insurance and Homeowners Insurance the Same?

Renters insurance and homeowners insurance are not the same policy but they share many similarities when it comes to coverage — both policies include personal property coverage, loss of use coverage and personal liability coverage, for instance. That said, homeowners insurance is for people who own a home, while renters insurance is for tenants who rent the unit they live in. In addition, homeowners insurance provides more comprehensive protection for the policyholder.

What Are the Key Differences Between Homeowners Insurance vs. Renters Insurance?

While there is a significant overlap between home and renters insurance, the primary difference is whether dwelling coverage is included. If the building you live in were to catch fire and burn down, only homeowners insurance would cover the cost of repairs because it includes dwelling coverage. If you were a renter in this scenario, that responsibility would fall to your landlord or the property owner and your renters insurance policy wouldn’t cover repairs to the property.

What Does Homeowners Insurance Cover?

Standard homeowners insurance will include six types of coverage:

• Dwelling coverage insures the structure of your home, including the roof, walls and foundation.
• Other structures coverage covers fences, detached garages, sheds and similar structures on your property.
• Personal property coverage protects your clothing, electronics, sports equipment, furniture, rugs and other belongings.
• Loss of use coverage pays for additional living expenses a policyholder incurs after being forced to evacuate the home due to a covered peril such as your house burning down. Coverage typically lasts up to 12 months, depending on your policy.^[3]
• Personal liability coverage protects the policyholder when a visitor suffers bodily injury or property damage while on the policyholder's property.
• Medical payments coverage covers another person’s medical bills if they’re injured on your property and is used for more minor bodily injury liability claims.

What Does Renters Insurance Cover?

Renters insurance covers nearly all the same facets as homeowners insurance except for dwelling coverage and other structures coverage. As mentioned, the unit’s structure should be covered under the landlord’s own insurance policy — not the tenant’s. Meanwhile, if the rental unit is temporarily unlivable due to a covered loss, the loss of use coverage in a renters policy can help cover a hotel stay while the landlord is arranging repairs.

What Is Not Covered?

Both homeowners insurance and renters insurance cover your personal belongings and typically carry the same coverage exclusions such as:

• Costs that exceed your policy’s limit
• Loss due to gradual sources of damage, lack of maintenance, negligence and normal wear and tear
• Certain natural disasters, like flooding, earthquakes and mudslides
• Pests such as termines, bed bugs and rodents
• Mold
• Terrorism or nuclear war
• Damages to your vehicle

That said, you can buy flood insurance, earthquake insurance and other insurance products to cover some of the excluded losses listed above.

Does Homeowners Insurance Cost More Than Renters Insurance?

Renters insurance will naturally be cheaper than homeowners insurance because the carrier is not insuring the property’s roof, walls, foundation and other structures. In 2024, renters insurance costs only $148 per year on average — considerably less than homeowners insurance at a whopping $1,915 per year.^[1][2] Of course, actual rates will vary based on factors like location, the value of your personal possessions and riders you might add to your policy.

Whether you’re buying homeowners insurance or buying renters insurance, the best way to find the most affordable coverage is to shop around. Enter your zip code below to get your free no-obligations quote.