What is the Difference Between Homeowners and Renters Insurance?

When renting or owning a property, getting the right insurance for your home and belongings is essential. It’s impossible to predict when a natural disaster may hit or when a break-in may happen, so it’s crucial that your property is always adequately protected.

Homeowners vs. Renters Insurance

Homeowners insurance covers damage that occurs to your property or belongings as a result of a natural disaster or home invasion. It also provides liability coverage, which applies if someone sustains an injury while on your property. Any owned house, condo, or apartment requires homeowners insurance.

Renters insurance is the only way to protect your belongings after a disaster if you live in a rental property. Some rental contracts even stipulate that you need renters insurance to move in.

What Coverage Does Homeowners Insurance Offer?

Most homeowners insurance covers property damage, living expenses if you must relocate during a home repair, and personal liability costs. That means that your insurance should cover hotel and food expenses if you must temporarily relocate.

Homeowners insurance also covers damage to personal property and medical expenses if anyone sustains an injury on your property. However, some homeowners insurance policies require add-ons for full coverage. Companies typically also require add-ons for expensive personal belongings, such as jewelry and artwork. 

What Coverage Does Renters Insurance Offer?

Similar to homeowners insurance, a typical renters insurance policy includes three types of coverage to protect you, your belongings, and temporary relocation after a covered loss. Even if you do not live extravagantly, the cost of renters insurance is always cheaper than the cost of replacing your belongings should a disaster occur.  

How Much Is Renters Insurance vs. Homeowners Insurance?

Renters insurance is typically cheaper than homeowners insurance because you are not paying for the coverage of your physical home. The cost of both homeowners and renters insurance fluctuates based on several factors.

Costs vary for both types of insurance based on how prone your location is to damage from natural disasters, proximity to first responders, and the amount of personal coverage you need.

Homeowners insurance also has varied costs associated with the age and complexity of your house, remodels and upgrades, and the quality of the materials used during the construction of the property.

We recommend that you get extra coverage if you live in an area prone to natural disasters or have expensive personal belongings.

Where Can I Get Insurance for My Property?

If you are looking for homeowners insurance, Gator Insurance Service in Pinellas Park, FL, is here to help you find affordable coverage. Call us at (727) 399-6403 to learn more or to get a free quote today.