Nearly everyone is familiar with homeowners insurance, even if they don't own a home and don't know precisely what it covers. Fewer people understand the ins and outs of renters insurance, however. Although they’re similar, they offer different types of protection. Below are some of the key differences between renters and homeowners insurance.

3 Differences Between Renters and Homeowners Insurance

1. Perceived Importance

Nearly everyone who owns a house understands how important home insurance is. Unfortunately, fewer people feel that way about renters coverage. Renters often believe their personal property is covered by their landlord's property insurance. In fact, it almost certainly isn't. Landlord policies typically only cover the structure of the building and any of their own personal property — like mowers, painting tools, etc. — used in running the business or maintaining the property.

2. Coverage

Another significant difference between renters and homeowners insurance is the coverage it offers. Home insurance pays to repair or replace the building if it's damaged by fire, storm, falling branches, or vandalism, while this coverage is unnecessary in a renter's insurance policy. This is because a renter is not responsible for paying for the upkeep of the property, that’s up to their landlord. 

However, both cover losses of personal property due to named hazards or theft. Both cover liability costs in case someone in your household accidentally injures someone or damages their property, and both usually exclude damages caused by floods, earthquakes, sinkholes, and mudslides. You can purchase coverage for those disasters separately.

3. Price

The cost of repairing or rebuilding a home is significant, and because this risk is not covered by renters insurance, the premiums for this type of coverage are significantly lower than those for a homeowner policy. If you are a renter and are reluctant to seek coverage because of the cost, talk to an agent. You may be pleasantly surprised at how much coverage you can buy for very little money.

To discuss your renters or homeowners insurance options with an experienced professional, contact Grachek Insurance in Kalispell, MT. They are locally owned and have served clients in and around Flathead County for more than 30 years. They also specialize in auto, motorcycle, boat, and life insurance. Visit their website to submit an information request or call (406) 755-4000 to request a quote.