Homeowners and renters alike are vulnerable to a wide range of serious threats, from fire and hurricanes to theft and vandalism. Homeowner’s and renter’s insurance policies are designed to insulate you from these risks, offering an umbrella of protection that covers several aspects of your life. While there are some strong similarities between the two types of policies, there are also critical differences you should be aware of before purchasing coverage.

The Difference Between Homeowner’s & Renter’s Insurance

Coverage for the Structure

If you rent your home, the landlord likely has insurance to protect the building itself. If an electrical fire breaks out or a strong storm damages the roof, their coverage will pay for the repairs. Because repairing the building is not your responsibility, renter’s insurance doesn’t include coverage for the structure itself. Homeowner’s insurance, on the other hand, will pay to repair or replace any damage to the house caused by a covered event.

Liability Coverage

While both renter’s and homeowner’s insurance policies include liability coverage, renting your home brings slightly different risks. Most importantly, renters may be held responsible for damage they cause to the building, even accidentally. When comparing policies, renters should check to ensure the liability coverage is enough to pay for repairs if they inadvertently start a small kitchen fire.

Cost of Coverage

Because homeowner’s insurance protects the building itself, premiums tend to be significantly higher than renter’s policies. Coverage costs depend on a broad spectrum of factors, including your local weather patterns, security measures, and neighborhood crime rates, but many renters can get the protection they need for just a few hundred dollars per year.
 

Since 1969, Wilson Insurance Agency has been helping with homeowner’s and renter’s insurance policies throughout Northwest Georgia. As an independent office, they offer policies from several of the industry’s leading carriers, giving them the ability to design coverage around your needs. To speak to an agent and request a quote, visit their website now or call (706) 278-0549.