Homeowners and renters insurance offer similar protections, but for different things. Renters insurance is like a smaller, more focused homeowners policy. Continue reading to discover the difference between homeowners insurance vs. renters insurance.

What is Homeowners Insurance?

In a thunderstorm, a tree falls and breaks one of your windows. You can cover the repairs out-of-pocket, or if you have homeowners insurance, file a claim and have it covered.

For example, when the tree breaks your window, the rain gets in and ruins your television. Homeowners insurance covers that, too.

To be more specific, homeowners insurance repairs or rebuilds your home’s damages from fire, smoke, theft, vandalism, or bad weather. It will also cover things like your furnace, water heater, air conditioner, and ductwork.

It covers not only the structure and vital components of your home but also the stuff and people in it. Your homeowner’s policy will cover any personal property damaged in similar instances, including theft.

Homeowners insurance also has liability protection if someone is damaged by or on your property, especially if they sue. It will cover legal costs and potential medical bills.

What is Renters Insurance?

Renters insurance also covers unexpected events. If someone breaks in and steals from you, you’re covered—if someone harms your property in an accident and unexpected damages occur. Your policy also covers any medical or legal liability that may come up in your home.

Let’s say that a fire seriously damages your apartment building. Everything in your apartment is lost, and you must relocate to try and afford a place to stay until you can get back on your feet.

A renters policy would make this situation easier. You may have lost your personal belongings, but your policy will give you funds to replace them. For your temporary lodgings, your renter’s policy will cover your daily living expenses. This coverage includes the place you stay and the food you eat (since you may not have a kitchen, you may spend more eating out).

Renters insurance covers personal property damage, liability, additional living expenses, and medical payments.

What are the Differences?

Let’s highlight the main difference between homeowners insurance vs. renters insurance—structural damages. Homeowners insurance doesn’t cover what’s in or happens in the home, but the house itself. Think back to the thunderstorm example—it won’t just pay for the lost TV, but the broken window, too.

Let’s say a similar instance happens, but with renters insurance. Your policy would cover a damaged TV but not the window—that’s the landlord’s job. Renter’s policies do not cover the actual structure of your rented space, just the stuff inside. The landlord’s insurance covers the building itself.

Call Magnolia Insurance Agency Today

At Magnolia Insurance Agency, we walk our customers through every insurance option and pay attention to their specific needs, just like we would our own family. To get your quote, call us at 770-213-5171 or contact us online.

Homeowners Insurance, renters insurance / By Magnolia Insurance Agency