If you own a house, one of the most important ways to protect your investment is with homeowners insurance. However, even if you don't own a home, you should nevertheless protect yourself financially. You can do that quite affordably with renters insurance. Although the two types of coverage are very similar, there are important differences. Below is a look at both types and what they offer.

Renters Insurance

Renters insurance offers three important benefits. First, it protects you against losses to your personal property by storms, fires, vandalism, and theft. Most basic policies do not cover floods or earthquakes, although you can buy protection from those for an additional amount.

Second, it offers personal liability protection. If you or a household member should injure someone or damage their property, renters insurance covers the cost of repairs, medical treatment, and any legal fees arising out of the event. Finally, it covers a certain amount of medical expenses if a visitor to your apartment should be injured for any reason, regardless of fault.

Homeowners Insurance

A homeowners policy covers all of the above, with the addition of one more type of protection: dwelling coverage. If your home should suffer damage due to any named event—typically falling objects, storms, fires, riots, vandalism, or impact by a vehicle—your homeowners insurance would cover the cost of repairs.

Again, floods and earthquakes are typically excluded. Because it offers the additional coverage, homeowners insurance is typically more expensive than renters insurance is. Another difference is that hardly any landlords require renters to buy coverage, but all mortgage lenders require borrowers to insure their homes at least in the amount of the outstanding loan balance to protect the bank's investment.

For expert assistance designing a renters or homeowners insurance policy, contact Family First Insurance Services in Wesley Chapel, FL. They are a licensed Allstate® agent serving clients in and around Pasco County. In addition to home and renters insurance, they also specialize in life, motorcycle, boat, and car insurance. Visit their website to request a quote or call (813) 994-3900 to ask for guidance from an experienced insurance agent.