If you are switching from renting to buying your first home, you will also need to change from renters to homeowners insurance. While these types of policies are similar, there are fundamental differences that you will need to know. This guide will break down similarities and differences between renters and homeowners insurance.

Renters vs. Homeowners Insurance: What to Know

What Is Covered

Renters and homeowners insurance policies function differently in terms of coverage. When you are renting an apartment or house, you do not own the property. So, the landlord or property owner has insurance to cover the property itself and the structure of the building. Your renters insurance will then cover your possessions and any damage that is your fault. For example, the property owner’s insurance would cover fire damage from an electrical issue. However, your renters insurance would cover the cost if a fire broke out due to a candle you left lit. 

How Much it Costs

If you had renters insurance while living in your apartment, you knew that it was quite affordable. While there, policies often run between $10 and $20 per month. However, expect your insurance costs to increase when you own a home. Generally, homeowners are insuring more property and higher value items. Since you own the entire structure, the outside property, and all of your belongings, you’ll want to invest more in your homeowners insurance.

How Many People Have it

Most homeowners are required to have homeowners insurance, especially when they have a mortgage. However, you may not have been required to have insurance as a renter. Since this is often the case, only about 37% of renters have insurance, compared to 97% of homeowners. Many renters may also forgo insurance because they think that their landlord’s insurance covers their personal property.

If you are ready to purchase your first home, Blum & Leonard Insurance and Realty will help you navigate your homeowners insurance options. These professionals have been serving residents in Estherville, IA, for over 35 years. They will put together a policy that covers all of your needs, ensuring that you understand the coverage process. You can also work with their team to purchase coverage for your business. To view a full list of their services, visit them online today. You can also call (712) 362-7272 to set up a meeting today.