đź“Š Quick Comparison
Homeowners Insurance
$1,500-$3,000/yr
national average
Renters Insurance
$150-$300/yr
national average
Coverage Comparison
| What's Covered | Homeowners | Renters |
|---|---|---|
| Building/Structure | âś“ Yes | âś— No (landlord's job) |
| Personal Belongings | âś“ Yes | âś“ Yes |
| Liability Protection | âś“ Yes | âś“ Yes |
| Additional Living Expenses | âś“ Yes | âś“ Yes |
| Medical Payments to Others | âś“ Yes | âś“ Yes |
| Other Structures (shed, fence) | âś“ Yes | âś— No |
Homeowners Insurance Explained
Homeowners insurance (HO-3 is most common) covers:
Coverage A: Dwelling
The house itself—walls, roof, built-in appliances. Usually the largest portion of your coverage.
Coverage B: Other Structures
Detached garage, shed, fence. Usually 10% of dwelling coverage.
Coverage C: Personal Property
Your stuff—furniture, clothes, electronics. Usually 50-70% of dwelling coverage.
Coverage D: Loss of Use
Hotel, meals, temp housing if home is uninhabitable. Usually 20% of dwelling.
Renters Insurance Explained
Renters insurance (HO-4) is essentially homeowners without dwelling coverage:
Personal Property
Your belongings—furniture, electronics, clothes, etc. You choose the coverage amount ($15K-$50K+ typical).
Liability
Protects you if someone is injured in your apartment or you damage someone's property. Usually $100K-$300K.
Additional Living Expenses
Covers hotel/temp housing if your apartment becomes uninhabitable (fire, flood damage, etc.).
Common mistake: Thinking your landlord's insurance covers your stuff. It doesn't. Landlord's policy only covers the building structure.
Common Misconceptions
❌ "My landlord's insurance covers me"
Landlord's policy covers the building only. Your clothes, electronics, furniture? Totally uninsured without renters insurance.
❌ "Homeowners insurance covers floods"
Standard homeowners does NOT cover flood damage. You need separate flood insurance through NFIP or private insurers.
❌ "I don't have enough stuff to insure"
Walk around your apartment. Phone ($1,000), laptop ($1,500), TV ($500), clothes ($3,000), furniture ($5,000)... it adds up fast.
The Bottom Line
Homeowners covers the building plus everything renters covers. Renters covers your stuff and liability only—but at $15-30/month, it's essential protection that 59% of renters still skip. Both include liability coverage that can save you from financial ruin if someone gets hurt on your property.