Both homeowners insurance and renters insurance protect you from financial loss, but they cover very different things. The policy you need depends on whether you own the property you live in or rent it from someone else.
Renters vs. Homeowners Insurance
Updated: November 10, 2026
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Key Takeaways
Homeowners insurance covers the dwelling, other structures, personal property and liability. Renters insurance covers only personal property and liability, not the building.
A landlord’s insurance protects only the property they own, not a tenant’s belongings, which is why renters need a separate policy to cover what’s inside.
Renters insurance averages $16 monthly compared to $288 monthly for homeowners insurance, which reflects the added cost of insuring the home’s structure.
Renters vs. Homeowners Insurance: What Each Policy Covers
Dwelling | ✓ | ✗ |
Other structures | ✓ | ✗ |
Personal property | ✓ | ✓ |
Loss of use | ✓ | ✓ |
Personal liability | ✓ | ✓ |
Medical payments | ✓ | ✓ |
What Does Homeowners Insurance Cover?
Homeowners insurance covers the dwelling, other structures on the property, and personal belongings inside the home. Renters insurance skips dwelling and structure coverage since renters don’t own the building. Both policies still cover personal belongings and other shared protections.
- Dwelling Coverage: Covers the structure of your home, including the roof, walls and built-in appliances, against covered perils. Renters insurance doesn’t include this.
- Other Structures: Covers detached garages, fences, sheds and similar structures on your property.
- Personal Property: Reimburses you for belongings that are damaged, destroyed or stolen, often at higher coverage limits than a renters policy.
- Loss of Use: Pays for temporary housing and extra living costs if a covered event makes your home uninhabitable while repairs are underway.
- Personal Liability: Covers legal and medical costs if someone is injured on your property and you’re found responsible.
- Medical Payments to Others: Covers minor medical expenses for guests injured on your property, regardless of fault.
What Does Renters Insurance Cover?
Renters insurance centers on two things: protecting what you own and covering your personal liability. It doesn’t cover the building you live in, but it does protect you financially if your belongings are damaged or stolen and if someone holds you legally responsible for an injury.
- Personal Property: Reimburses you for belongings damaged or stolen by a covered peril, including furniture, clothing, electronics and jewelry. Renters insurance is built around this coverage.
- Loss of Use: Pays for a hotel or temporary housing if a covered event makes your unit uninhabitable. This also covers extra living costs during that time.
- Personal Liability: Covers legal fees and damages if a guest is injured in your rental or you damage a neighbor's property by accident.
- Medical Payments to Others: Pays minor medical costs for guests injured in your unit. Fault doesn't factor into this coverage.
COMMONLY COVERED PERILS IN BOTH HOME AND RENTERS INSURANCE
Home and renters insurance cover the same core perils. Ownership status doesn’t change which events are covered.
- Fire and smoke: House fires, wildfires and smoke damage
- Wind and weather: Windstorm, hail, lightning, ice or snow weight
- Sudden water damage: Burst pipes, accidental overflow from appliances or plumbing
- Theft and vandalism: Stolen belongings and intentional property damage
- Impact events: Falling objects, vehicle or aircraft damage, civil unrest
What Insurance Is the Landlord Responsible For?
When you rent a home or apartment, the landlord carries insurance on the property, not on what’s inside it. A landlord’s policy, sometimes called landlord insurance, covers the building’s structure, other structures on the property and the landlord’s own liability if someone is injured on the premises. That coverage stops at your front door: if your furniture is damaged in a fire or your electronics are stolen, the landlord’s insurer won’t pay for it. That’s the coverage shortfall renters insurance is designed to fill.
CAN A LANDLORD REQUIRE RENTERS INSURANCE?
Yes, landlords can and often do require renters insurance as a condition of the lease. If your lease includes this requirement, you’ll need to show proof of an active policy before or shortly after moving in. Failing to get coverage when your lease requires it can be grounds for a lease violation.
What Do Renters and Homeowners Insurance Not Cover?
Renters and homeowners insurance share a common list of exclusions, meaning certain events won’t be covered regardless of which policy you hold. The biggest overlaps are in natural disasters that require their own separate policies.
- Flooding: Neither policy covers flood damage. A separate flood insurance policy, often through the National Flood Insurance Program, covers this instead.
- Earthquakes: Standard home and renters policies exclude earthquake damage. You'll need a separate earthquake endorsement or standalone policy for this coverage.
- Normal wear and tear: Gradual deterioration and routine maintenance fall on the policyholder, not the insurer.
- Pest and animal damage: Homeowners and renters policies both exclude termite, rodent and insect damage.
- Intentional damage: Insurers won't cover damage a policyholder causes on purpose.
How Much Does Renters Insurance Cost Compared to Homeowners?
Renters and homeowners insurance aren’t truly comparable on cost because they cover very different risks. Renters insurance protects your belongings and liability, not the building you live in. Homeowners insurance covers the structure, personal property and liability together, which is why premiums are much higher.
Homeowners Insurance
$288 per month
$250K Dwelling / $125K Personal Property / $200K Liability
Renters Insurance
$16 per month
$20K Personal Property / $100K Liability
Rates vary by state, and MoneyGeek's guide to average home insurance costs breaks down what homeowners pay nationwide. You can also estimate your own costs with MoneyGeek's free home insurance calculator, based on your home's details.
WHY TRUST MONEYGEEK’S RATES?
Both sets of rates come from Quadrant Information Services, which collects premium data directly from state insurance filing records across all 50 states and Washington, D.C. Carriers are required by law to file their rates with state regulators before they can charge them, so these are actual filed rates rather than estimates pulled from brokers or online quote tools. MoneyGeek pulled data from ZIP codes spanning every state to reflect current market conditions. Read more about our home insurance methodology and renters methodology.
Which Type of Insurance Do You Need?
The right policy depends on your relationship to the property you live in. Homeowners insurance is built for property owners; renters insurance covers what a tenant owns inside a home or apartment.
Choose Renters Insurance If... | Choose Homeowners Insurance If... |
|---|---|
You rent a home, apartment or condo | You own the home you live in |
You want to protect your belongings without insuring the building | Your mortgage lender requires coverage |
Your landlord requires a policy as a condition of your lease | You want protection for both the structure and your personal property |
You’re a college student living in off-campus housing | You own your home outright and want to protect your financial investment |
Renters vs. Homeowners Insurance: Bottom Line
Renters and homeowners insurance kick in against the same types of events, from fire to theft to liability claims, but they apply to very different assets. Homeowners insurance is built around the property itself, covering the structure, personal belongings and the owner’s liability. Renters insurance focuses on what the tenant owns, not the building, which is why premiums are a fraction of what homeowners pay.
Renters vs. Home Insurance: FAQ
Renters insurance covers your personal belongings and liability, not the unit’s structure. Repairs to a damaged wall, floor or appliance fall under the landlord’s property insurance since those are building-owned. If negligence on your part caused the damage, your renters insurance liability coverage may cover what you’re held responsible for.
Renters insurance doesn’t carry over to a home you purchase and won’t cover the new home’s structure. Once you close on a home, you’ll need a homeowners policy in place, often before or at closing if you’re using a mortgage. You can cancel your renters policy once the homeowners policy is active, and some insurers will refund unused premium for the remaining term.
Renters insurance covers the tenant’s personal belongings and personal liability. Landlord insurance covers the property owner’s structure, other buildings on the property and the owner’s liability. The two policies work alongside each other. A landlord’s policy doesn’t protect the tenant’s belongings, and a renters policy doesn’t protect the building.
About Mark Fitzpatrick
Mark Fitzpatrick is a licensed Property and Casualty (P&C) Insurance Producer and MoneyGeek's resident expert in insurance and economics. In nearly a decade covering the insurance market at LendingTree and MoneyGeek, he's analyzed hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.
His work has appeared in The Washington Post, The New York Times and NPR. He draws on independent cost and consumer experience data, and no insurance company partnerships affect his recommendations.
Mark studied at Boston College and later earned a master's in economics and international relations from Johns Hopkins University. He worked in financial risk management at State Street before joining MoneyGeek. He's also a five-time “Jeopardy!” champion.