Can You Have Homeowners Insurance and Renters Insurance

Homeowners insurance and renters insurance are both types of property insurance — though they vary in who they're designed for and the types of coverages included. Read on to see how they compare in terms of costs, deductibles, discounts available, and more.

Homeowners insurance vs. renters insurance

	Homeowners insurance	Renters insurance
Who needs it …	Homeowners	Renters
What it covers …	Dwelling, other structures, personal property, liability, medical payments, and loss of use	Personal property, liability, and loss of use
What information technology costs …	$1,249 per year on average	$179 per twelvemonth on average
Discounts bachelor?	Yes	Yeah
When it'due south required …	You have a mortgage on the home	Varies by landlord
How it'southward paid …	Premiums paid monthly, quarterly, or annually	Premiums paid monthly, quarterly, or annually
Includes a deductible?	Yes	Yeah
	Learn more about homeowners insurance	Larn more nigh renters insurance

Homeowners vs. renters insurance: Who needs information technology?

Homeowners insurances and renters insurance are designed for 2 different types of dwellers — hither'southward how information technology breaks down for each.

Homeowners insurance

Homeowners insurance is designed to protect homeowners from the risks that come with abode ownership, including coverage for the construction of your home, all of the contents inside of information technology, and protection against expensive lawsuits or medical bills if someone is injured on your holding. It too includes loss of use and medical payments coverage, which we'll discuss more below.

Renters insurance

Renters insurance is designed to protect tenants from theft or damage to their property when they hire a home or apartment, as well as liability coverage for legal and medical bills if someone is injured while at your home.

Homeowners vs. renters insurance: What coverages are included?

Homeowners insurance and renters insurance include some of the same types of coverage — here'due south how it breaks down for each.

Homeowners insurance

Homeowners insurance includes half dozen chief types of coverages:

• Dwelling: Pays to rebuild your entire house from the ground up after a covered loss.

• Other structures: Pays to rebuild other structures on your holding like fences, sheds, or discrete garages afterwards a covered loss.

• Personal belongings: Pays to repair or replace your personal belongings after a covered loss.

• Liability: Pays for medical and legal bills if someone is injured or their property is damaged while at your home and yous're found legally responsible.

• Medical payments: Pays for smaller medical payments for your guests if they're injured at your dwelling house — regardless of who is at fault.

• Loss of use: Pays for hotel stays, dining out, transportation costs, and more if y'all need to live elsewhere after a covered loss to your home.

Renters insurance

Renters insurance includes three primary types of coverages:

• Personal property: Pays to repair or replace your personal belongings after a covered loss.

• Liability: Pays for medical and legal bills if someone is injured or their property is damaged while at your home or flat and you're found legally responsible.

• Loss of use:Pays for hotel stays, dining out, transportation costs, and more if yous demand to alive elsewhere after a covered loss to your home or flat.

When you rent a dwelling or flat, the dwelling and other structures coverage of the home is your landlord's problem and is covered past their landlord orrental property insurance policy. That's why your renters policy doesn't cover this.

Keep in mind that the landlord's policy does not cover your property, and so if y'all want to ensure your property is covered, you'll want to have out a renters insurance policy yourself. Some landlord policies include medical payments coverage if a tenant's guest is injured while at the belongings, but this isn't e'er the case.

Does home and renters insurance cover holding stolen or damaged outside my abode or apartment?

Yes, both abode and renters insurance protect your property if information technology's stolen, either from your home or off your belongings.

For case, if someone breaks into your car and steals your laptop, your renters insurance or homeowners insurance policy would come into play for the stolen laptop (the broken windows would still fall to your auto insurance company, though).

Homeowners vs. renters insurance: What perils are covered?

Both homeowners and renters insurance policies include the same covered and excluded perils, meaning specific types of damage both policies will or will not cover.

Covered perils for homeowners and renters insurance

Virtually standard homeowners and renters insurance policies protect you lot from the following types of damage:

• Burn, lightning, and smoke damage

• Theft, vandalism, and riots

• Windstorm and hail

• Weight of snow, water ice, and sleet

• Falling objects

• Impairment from steam- or water-heating appliances

• Leakage or overflow of water or steam

• Freezing of plumbing, heating, air conditioning

• Brusk-circuit damage caused by electrical appliances

• Explosions

• Impairment by aircraft or vehicles (not your own)

• Volcanic eruption

Excluded perils for homeowners and renters insurance

Most standard homeowners and rentersinsurance policies exclude coverage from the following types of impairment:

• Flooding

• Earthquakes

• Normal vesture and tear

• Negligence

• Maintenance bug

• Mold or fungus growth

• Pest or rodent infestations

If you live in an surface area of the country that'south loftier-run a risk for flooding or earthquakes, you tin can typically add together coverage to a renters or homeowners policy for protection from those natural disasters, or y'all tin buy standalone earthquake insurance or a flood insurance policy.

Homeowners vs. renters insurance: What does it cost?

Homeowners insurance is more expensive than renters insurance considering it includes coverage for both the construction of the house, as well as the contents inside. Here's how it breaks down for each.

Homeowners insurance

Homeowners insurance costs an boilerplate of $one,249 per yr, co-ordinate to the NAIC.

Homeowners insurance is more than expensive than renters insurance because a home policy has dwelling coverage at its core. It'southward a good idea for homeowners to have enough dwelling coverage to cover the cost to rebuild their entire home.

That means if you live in a business firm that has a replacement cost of $300,000, y'all should have $300,000 worth of home coverage. This is on top of the coverage you'd add to your policy to rebuild other structures on your property and pay for harm to your belongings and liability protection.

Renters insurance

Renters insurance costs an average of $179 per year, co-ordinate to the NAIC.

A standard renters policy typically contains around $30,000 in personal holding coverage and $100,000 in liability coverage, making it a great value.

What determines the toll of home and renters insurance?

Insurance companies look at the following factors when determining the price of your renters or homeowners insurance premiums:

• Proximity to natural disaster take a chance zones

• Crime rate where you live

• Credit score

• Claims history

• Deductible corporeality

• Value of personal property

• Discounts you qualify for

Homeowners vs. renters insurance: Are discounts bachelor?

Insurance companies offer discounts for both homeowners and renters insurance. A few of the almost pop discounts available include:

• Safety discounts for installing a infiltrator alert or deadbolt locks

• Bundling discounts for bundling your renters or home policy with your auto policy

• Loyalty discounts for existence insured with the company for then many years

• Paid-in-full discounts for paying your premiums in full instead of monthly

Another manner to lower your premiums is to raise your deductible — this is the amount you accept to pay out of pocket before your insurance company pays out your claim. Deductibles for both home and renters insurance typically range from $500 to $two,000. The college your deductible, the cheaper your premiums will be.

Reshopping your insurance every year is a good way to relieve on your premiums, too. It's a adept idea to store around annually because another insurer may offer yous the same coverage at lower rates. You tin re-shop your abode and renters insurance and compare companies with one of our Policygenius experts.

Homeowners vs. renters insurance: When is it required?

Neither are required by law, though yous might still need to get homeowners or renters insurance depending on the below.

Renters insurance

Renters insurance isn't required by law, though some landlords might require y'all to take out a renters insurance policy equally a stipulation of your lease.

Kara McGinley is an editor and licensed dwelling insurance expert at Policygenius, where she writes about homeowners and renters insurance. As a journalist and as an insurance skilful, her work and insights accept been featured in Kiplinger, Lifehacker, MSN, WRAL.com, and elsewhere.

Jennifer Gimbel is a managing editor and home insurance expert at Policygenius, where she oversees our homeowners insurance coverage. Previously, she was the managing editor at Finder.com and a content strategist at Blubbering.com.

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Source: https://www.policygenius.com/homeowners-insurance/homeowners-insurance-vs-renters-insurance/