What’s The Difference Between Renter’s Insurance and Home Owner’s Insurance?

What’s The Difference Between Renter’s Insurance and Home Owner’s Insurance?

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For most people renter’s insurance is the one of the cheapest insurances you can buy. Most typical renter’s insurance policies are around $10-25/month.

Renter’s Insurance is very similar to home owners insurance in some ways – it just depends on whether you are renting your home or whether you own it. If you are renting your home then the landlord should have insurance to cover the structural aspects of the building, but that doesn’t cover you for any personal belongings which are in your home.

Renter’s Insurance offers cover for such items as:

  • Clothes
  • Furniture and furnishings
  • Jewelry
  • Electrical appliances
  • Kitchen equipment
  • Other items of personal property

If your home was damaged by fire, or broken into and your laptop was stolen, for example, the loss or damage would be covered by your rental insurance policy.

Another very important aspect of renter’s insurance is that you can also have public liability insurance. This covers you in the unfortunate event that someone is injured while visiting your home (they might trip over the cat for example, causing a nasty injury and needing lots of medical attention and time off work). This also covers people who live in your home, not just those who are visiting and didn’t even know that you have a cat!

Home Owners Insurance should also cover “all of the above”, plus the bits which are the responsibility of your landlord, ie any structural damage to the building or facilities.

It is important that you read all of the small print in your policy carefully to see exactly what you are and are not covered for. If, for example, a tree was struck by lightening and crashed through your window smashing your television set to pieces – are you covered? Just a thought. You also need to decide whether to cover your property at it’s current value (ie taking depreciation into account) or whether you want to be covered at replacement value (the cost of a new item). This can make a big difference, not only in the size of your premiums, but also in the size of your claim should you ever be in a position to need one.


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