What's the difference between renter's insurance and homeowner's insurance?

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January 2017
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Homeowner's and renter's insurance are similar in the fact that they are both associated with your dwelling. The main differences in these two types of insurance is what is included in the coverage and if you are required to have homeowner's or renter's insurance while living in the dwelling.

Homeowner's insurance covers the actual building you live in (and other structures, such as garages) while renter's insurance does not. With renter's insurance, the landlord will be expected to have coverage on the building while your renter’s insurance will cover your personal property. Most standard homeowner's policies will have personal property coverage as well. With homeowner's insurance, you are covering a more substantial asset (the actual home), thus the cost of insurance should be expected to be higher. Most homeowner's and renter's insurances will also have liability coverage associated with them.

If you mortgage your home, homeowner's insurance will almost always be required. Although it is becoming more popular that landlords require their renters to have renter’s insurance, having renter's insurance isn't always required when renting.

I hope this was helpful.

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