Whether you own or rent your home, the right insurance policy protects your family and belongings. Although renters and homeowners insurance policies sound similar, they differ in some important ways. Arlene Lear Insurance of Bolivar and Humansville, MO, will help you find the type of coverage that meets your needs. Their experienced insurance agents will match you with a policy that accurately reflects your living situation. Here, they explain the differences between renters and homeowners insurance.

Coverage Areas

Both policies protect the items you own, but only homeowners insurance protects the structure itself. As a renter, you are not responsible for the building, so only your belongings are covered. As a homeowner, the entire property is your responsibility, and your policy will reflect that. 

Cost of Coverage

Since a homeowners policy covers more, it will be more expensive per month than a renters policy. People who need renters insurance are only protecting the belongings inside the home and not the structure itself, so the monthly premiums are much lower.

Requirements

While most mortgage companies require proof of homeowners insurance before approving a loan, the same does not hold true for renters and their landlords. Property managers are not legally required to request that tenants have coverage. However, it’s important to note that a landlord’s property insurance may not cover your belongings in the event of an accident. If you’re renting, it’s always best to purchase a policy, even if the landlord does not require it.

The differences between renters and homeowners insurance can be confusing, but the team at Arlene Lear Insurance will help you make the distinction and find the best policy for your needs. In addition to covering homes, they offer affordable, high-quality auto insurance and life insurance, so you’re always protected. Visit their website for more information about their products. Call (417) 754-8377 to schedule an appointment at their Humansville office and (417) 777-3000 for their Bolivar office.