<!-- wp:gallery {"linkTo":"none"} -->
<figure class="wp-block-gallery has-nested-images columns-default is-cropped"><!-- wp:image {"id":3729,"sizeSlug":"large","linkDestination":"none"} -->
<figure class="wp-block-image size-large"><img src="https://smartinsurance.tips/wp-content/uploads/2023/12/Untitled-21-1024x1024.png" alt="" class="wp-image-3729"/></figure>
<!-- /wp:image --></figure>
<!-- /wp:gallery -->

<!-- wp:paragraph -->
<p>Devastating and costly disasters can strike where you live at any time. That is why it’s important to purchase either homeowners insurance or renters insurance.</p>
<!-- /wp:paragraph -->

<!-- wp:paragraph -->
<p>Homeowners and renters insurance are similar. Both cover your personal property (your belongings) for problems like fire and theft. And they both cover you if you are responsible for damages to someone else. But there are some key differences.</p>
<!-- /wp:paragraph -->

<!-- wp:heading -->
<h2 class="wp-block-heading">What Differs in Renters Insurance Coverage vs. Home Insurance Coverage?</h2>
<!-- /wp:heading -->

<!-- wp:paragraph -->
<p>The primary difference between homeowners insurance and renters insurance is that homeowners insurance covers structures—your house, a fence, a shed and other structures. This is not true of renters insurance. Your landlord’s insurance covers damage to the building.</p>
<!-- /wp:paragraph -->

<!-- wp:paragraph -->
<p>For example, if you own a home and a fire damages your house, your homeowners insurance will pay to repair the building. But if you rent your home and fire damages your apartment, your landlord’s insurance policy would cover repairs to the building.</p>
<!-- /wp:paragraph -->

<!-- wp:heading -->
<h2 class="wp-block-heading">Homeowners Insurance vs. Renters Insurance</h2>
<!-- /wp:heading -->

<!-- wp:paragraph -->
<p>If you are considering purchasing either homeowners or renters insurance, keep the following in mind.</p>
<!-- /wp:paragraph -->

<!-- wp:heading {"level":3} -->
<h3 class="wp-block-heading">Who Needs it?</h3>
<!-- /wp:heading -->

<!-- wp:list -->
<ul><!-- wp:list-item -->
<li>If you own your house, you need homeowners insurance. It’s typically required if you have a mortgage.</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li>If you rent your home, you need renters insurance. Your landlord may require you to have it.</li>
<!-- /wp:list-item --></ul>
<!-- /wp:list -->

<!-- wp:heading {"level":3} -->
<h3 class="wp-block-heading">What Does it Cover?</h3>
<!-- /wp:heading -->

<!-- wp:list -->
<ul><!-- wp:list-item -->
<li><strong>Homeowners insurance</strong>&nbsp;covers your house, other structures, and accidental property damage and injuries to others. It also includes coverage for additional living expenses if you temporarily can’t live in your home due to a problem covered by the policy.</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li><strong>Renters insurance</strong>&nbsp;covers your personal belongings as well as accidental property damage and injuries to others. It also includes additional living expenses coverage if you temporarily can’t live at home due to a problem covered by your policy.</li>
<!-- /wp:list-item --></ul>
<!-- /wp:list -->

<!-- wp:heading {"level":3} -->
<h3 class="wp-block-heading">Are Discounts Available?</h3>
<!-- /wp:heading -->

<!-- wp:list -->
<ul><!-- wp:list-item -->
<li>You can often find homeowners insurance discounts like safety and security feature discounts, roof age discounts, and policy-related discounts such as bundling your home and auto insurance policies.</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li>Renters insurance companies also offer multi-policy discounts, such as bundling auto and renters insurance. You can also find discounts such as home safety discounts and policy-related discounts, like going paperless or paying your premium in full.</li>
<!-- /wp:list-item --></ul>
<!-- /wp:list -->

<!-- wp:heading {"level":3} -->
<h3 class="wp-block-heading">How Are the Premiums Paid?</h3>
<!-- /wp:heading -->

<!-- wp:paragraph -->
<p>You can typically pay homeowners or renters insurance premiums online, by EFT payment or by mailing your insurer a check. Some homeowners pay their home insurance premiums through an escrow account.</p>
<!-- /wp:paragraph -->

<!-- wp:paragraph -->
<p>Homeowners and renters insurance payments are typically made on a monthly, quarterly, semi annual or annual basis.</p>
<!-- /wp:paragraph -->

<!-- wp:heading {"level":3} -->
<h3 class="wp-block-heading">Is There a Deductible?</h3>
<!-- /wp:heading -->

<!-- wp:paragraph -->
<p>Both home and renters insurance policies have a deductible for claims related to theft and property damage. There is no deductible on liability claims made against you.</p>
<!-- /wp:paragraph -->

<!-- wp:paragraph -->
<p>An insurance deductible is the amount subtracted from an insurance check if you file a claim for certain coverage types, such as a stolen or damaged property claim. Common deductible amounts are $500 and $1,000. For example, if you file a home insurance claim for a burst pipe that destroyed a couch and you have a $500 deductible, that amount will be deducted from your claims check.</p>
<!-- /wp:paragraph -->

<!-- wp:heading -->
<h2 class="wp-block-heading">Homeowners Insurance vs. Renters Insurance: What Perils Are Covered?</h2>
<!-- /wp:heading -->

<!-- wp:paragraph -->
<p>Renters and home insurance policies cover what are known as “perils,” which is another word for problems. For example, a home insurance policy covers fire-related damage to your house and personal property.</p>
<!-- /wp:paragraph -->

<!-- wp:paragraph -->
<p>Personal property for both home and renters insurance covers 16 perils:</p>
<!-- /wp:paragraph -->

<!-- wp:list -->
<ul><!-- wp:list-item -->
<li>Accidental discharge or overflow of water or steam</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li>Aircraft, including spacecraft and self-propelled</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li>Civil commotion or riot</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li>Explosion</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li>Falling objects</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li>Freezing</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li>Hail or windstorm</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li>Malicious mischief or vandalism</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li>Lightning or fire</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li>Smoke</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li>Sudden and accidental damage from artificially generated electrical current</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li>Sudden and accidental tearing apart, cracking, burning or bulging</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li>Theft</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li>Vehicles</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li>Weight of ice, sleet or snow</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li>Volcanic eruption</li>
<!-- /wp:list-item --></ul>
<!-- /wp:list -->

<!-- wp:paragraph -->
<p>The most common type of homeowners insurance policy is an HO-3. An HO-3 is an “open-perils” policy for your house. It will cover any cause of house damage except for causes specifically listed as exclusions. Common exclusions include power failure, floods, earthquakes, negligence, normal wear and tear, pets and insects, and negligence. But an HO-3 policy typically covers your possessions for only 16 perils, which will be listed in the policy.</p>
<!-- /wp:paragraph -->

<!-- wp:paragraph -->
<p>You can upgrade to an HO-5 policy for the highest level of home insurance. It covers your house and personal property for all perils, except for those listed as exclusions (such as floods). It also includes replacement cost coverage for damaged or stolen items rather than actual cash value. By contrast, with an HO-3 policy you generally need to add a simple endorsement in order to get replacement cost coverage.</p>
<!-- /wp:paragraph -->

<!-- wp:heading -->
<h2 class="wp-block-heading">Common Coverage Types in Homeowners and Renters Insurance</h2>
<!-- /wp:heading -->

<!-- wp:paragraph -->
<p>Homeowners insurance and renters insurance share several types of coverage.</p>
<!-- /wp:paragraph -->

<!-- wp:heading {"level":3} -->
<h3 class="wp-block-heading">Personal Property Coverage</h3>
<!-- /wp:heading -->

<!-- wp:paragraph -->
<p>Personal property coverage pays to repair or replace your possessions such as furniture, tools, clothing, electronics, toys, sports equipment and more. Your belongings typically are covered wherever you take them, including in your car or on vacations.</p>
<!-- /wp:paragraph -->

<!-- wp:paragraph -->
<p>The theft of high-value items such as jewelry is typically limited to a certain amount (such as $1,500). If you want more coverage for high-value items, you’ll want to schedule personal property. This means your valuable items will be insured separately from the rest of your belongings and will have full coverage for theft and damage.</p>
<!-- /wp:paragraph -->

<!-- wp:heading {"level":3} -->
<h3 class="wp-block-heading">Personal Liability Coverage</h3>
<!-- /wp:heading -->

<!-- wp:paragraph -->
<p>Personal liability coverage pays for medical expenses, property damage and legal costs if you accidentally cause injuries or property damage to others. For example, if your dog bites someone at a park, your liability insurance can pay for their medical bills.</p>
<!-- /wp:paragraph -->

<!-- wp:paragraph -->
<p>If you want more liability coverage than your home or renters insurance provides, consider adding an umbrella insurance policy.</p>
<!-- /wp:paragraph -->

<!-- wp:heading {"level":3} -->
<h3 class="wp-block-heading">Additional Living Expenses</h3>
<!-- /wp:heading -->

<!-- wp:paragraph -->
<p>Additional living expenses (ALE) coverage pays for temporary housing and other costs if you cannot live at home due to a problem covered by your policy (like a fire). It covers costs like hotel bills, takeout meals and services such as pet boarding and laundry.</p>
<!-- /wp:paragraph -->

<!-- wp:heading {"level":3} -->
<h3 class="wp-block-heading">Medical Payments Coverage</h3>
<!-- /wp:heading -->

<!-- wp:paragraph -->
<p>Medical payments coverage pays for small medical expenses for a guest who is injured in your home or apartment, no matter who is at fault for the accident. This way, small medical bills can be paid quickly. It also covers small medical bills of others due to problems that happen away from your house, such as your dog biting someone in the park. This coverage is usually sold in small coverage amounts such as $1,000 to $5,000.</p>
<!-- /wp:paragraph -->

<!-- wp:heading -->
<h2 class="wp-block-heading">Why Is Homeowners Insurance More Expensive Than Renters Insurance?</h2>
<!-- /wp:heading -->

<!-- wp:paragraph -->
<p>The primary reason homeowners insurance is more expensive than renters insurance is because it covers the cost of rebuilding your house if a problem like a fire destroys it. Renters insurance does not pay to repair any structures. Landlord insurance covers the building if you are a renter.</p>
<!-- /wp:paragraph -->

<!-- wp:paragraph -->
<p>A home insurance policy also covers other structures, like a deck, detached garage or fence. Renters insurance does not cover other structures—that’s also covered by landlord insurance.</p>
<!-- /wp:paragraph -->

<!-- wp:heading -->
<h2 class="wp-block-heading">How Much Renters Insurance Do I Need?</h2>
<!-- /wp:heading -->

<!-- wp:paragraph -->
<p>You can figure out how much renters insurance you need by creating a home inventory. That will give you an idea of how much personal property coverage you’ll need in case your belongings are destroyed by a problem like a tornado or fire.</p>
<!-- /wp:paragraph -->

<!-- wp:paragraph -->
<p>A home inventory can be as simple as using a pen and paper, or you can use your phone to take pictures or video. You can also use an app, such as the home inventory app provided by the National Association of Insurance Commissioners. You’ll want to record a description of your items (or group of items, like dishes) and the estimated values. You can also include serial numbers and receipts if you have them.</p>
<!-- /wp:paragraph -->

<!-- wp:paragraph -->
<p>But personal property coverage is just the starting point. Don’t overlook the importance of purchasing higher amounts of liability coverage, particularly if you have a high net worth. Typically, a renters policy might start with a minimum of $100,000 in liability protection, which is probably far too little for many people. You want to have enough liability insurance to cover what you could lose in a lawsuit.</p>
<!-- /wp:paragraph -->

<!-- wp:paragraph -->
<p>Finally, decide how much coverage you need for additional living expenses. Your insurance company will either offer you a flat amount of this coverage (such as $5,000) or base your coverage amount on a percentage of your personal property coverage. If you need more coverage, you can typically buy more.</p>
<!-- /wp:paragraph -->

<!-- wp:heading -->
<h2 class="wp-block-heading">Shopping for Homeowners or Renters Insurance</h2>
<!-- /wp:heading -->

<!-- wp:paragraph -->
<p>Whether you’re shopping for a home or renters insurance policy, the process for getting insurance is similar. Here are some tips for finding the right policy.</p>
<!-- /wp:paragraph -->

<!-- wp:heading {"level":3} -->
<h3 class="wp-block-heading">How to Get Homeowners Insurance</h3>
<!-- /wp:heading -->

<!-- wp:paragraph -->
<p>Buying a home can be a daunting process, but it’s much easier to buy a home insurance policy. Here’s how to get homeowners insurance:</p>
<!-- /wp:paragraph -->

<!-- wp:list -->
<ul><!-- wp:list-item -->
<li>Determine how much homeowners insurance you need.</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li>Gather information on your home, like the year it was built, number of rooms, square footage and the type of building materials.</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li>Compare homeowners insurance quotes among several different insurers.</li>
<!-- /wp:list-item --></ul>
<!-- /wp:list -->

<!-- wp:paragraph -->
<p>Progressive and Westfield have the cheapest home insurance, according to Forbes Advisor’s analysis. Your home insurance costs will vary depending on where you live, the age of the house and other factors, such as the cost to rebuild your house.</p>
<!-- /wp:paragraph -->

<!-- wp:heading {"level":3} -->
<h3 class="wp-block-heading">How to Get Renters Insurance</h3>
<!-- /wp:heading -->

<!-- wp:paragraph -->
<p>The process of buying a renters policy is similar to a home insurance policy. Here’s how to get renters insurance:</p>
<!-- /wp:paragraph -->

<!-- wp:list -->
<ul><!-- wp:list-item -->
<li>Determine how much personal property coverage you need by creating a home inventory.</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li>Estimate the amount of liability insurance you need based on your net worth.</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li>Compare renters insurance quotes from several insurers.</li>
<!-- /wp:list-item --></ul>
<!-- /wp:list -->

<!-- wp:paragraph -->
<p>State Farm has the cheapest renters insurance, according to Forbes Advisor’s analysis. Your renters insurance costs will vary depending on where you live and other factors, such as how much coverage you need.</p>
<!-- /wp:paragraph -->

<!-- wp:heading -->
<h2 class="wp-block-heading">Renters Insurance vs. Landlord Insurance: Are They the Same?</h2>
<!-- /wp:heading -->

<!-- wp:paragraph -->
<p>Renters insurance and landlord insurance are very different.</p>
<!-- /wp:paragraph -->

<!-- wp:list -->
<ul><!-- wp:list-item -->
<li><strong>Renters insurance</strong>&nbsp;covers your belongings for problems like theft and fire. It also covers accidental injuries and property damage to others, plus your additional living expenses if you can’t live in your home due to a problem covered by your policy.</li>
<!-- /wp:list-item -->

<!-- wp:list-item -->
<li><strong>Landlord insurance</strong> covers the building and other structures for problems like fires, tornadoes and vandalism. It does not cover your belongings if they are damaged.</li>
<!-- /wp:list-item --></ul>
<!-- /wp:list -->

<!-- wp:paragraph -->
<p></p>
<!-- /wp:paragraph -->

<!-- wp:paragraph -->
<p>To read the full article, <a href="https://www.forbes.com/advisor/homeowners-insurance/whats-difference-between-renters-insurance-and-homeowners-insurance/">click here.</a></p>
<!-- /wp:paragraph -->