Updated: August 14, 2026
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Both home and renters insurance pay to replace your belongings and for temporary housing after a loss, but home insurance also covers your home's structure.
Renters and home insurance policies don't cover earthquakes and floods, but you can get additional coverage for both those events, depending on your state.
If you own a rental property, you'll need landlord insurance instead of a home or renters' policy.
The difference between renters and homeowners insurance is that renters insurance does not include dwelling coverage, which protects the structure of the home. Both policies cover your personal belongings, liabilities and additional living expenses.
Take a quick look at the differences between the two in the table below.
Coverage | Renters Insurance | Homeowners Insurance | Description |
|---|---|---|---|
Dwelling Coverage | No | Yes | Pays for repairs to your home in case of damage |
Personal Property Coverage | Yes | Yes | Pays to replace or repair personal belongings following a covered event |
Liability Coverage | Yes | Yes | Pays for legal fees in the event you are sued due to a covered incident |
Medical Payments Coverage | Yes | Yes | Pays for medical expenses of third parties injured on your property |
Additional Living Expenses (ALE) | Yes | Yes | Pays for your temporary living expenses if you must leave your home due to a covered situation |
Dwelling coverage in homeowners insurance protects the physical structure of your home, including the walls, roof and built-in fixtures, against covered perils like fire, wind or vandalism. This coverage (subject to policy terms, conditions and deductibles) ensures that if your home is damaged or destroyed, the cost to repair or rebuild it is covered up to your policy limits.
Renters insurance leaves out dwelling coverage because insuring the building itself is the landlord's responsibility, not the tenant's. Instead, it focuses on the tenant's personal belongings and liability coverage.
Homeowners and renters insurance both protect against perils, which are events or risks that can cause damage or loss. A peril can include:
Both renters and home insurance cover damage from fire and smoke, whether it's an electrical fault, a cooking accident or a wildfire. Both also cover falling objects like tree branches or debris, and homeowners insurance extends that to structural repairs.
Theft or intentional damage to your belongings gets reimbursed under both home and renters policies, whether it happened at home or somewhere else.
Strong winds, hailstorms and hurricanes are covered perils: homeowners policies handle the structure, renters policies handle personal items. Burst pipes and appliance leaks fall under the same umbrella when the water damage is sudden and accidental, but flooding is its own coverage entirely.
Coverage for these perils holds in most policies, but the fine print differs by insurer, so don't skip reading your actual contract to see where your coverage really starts and stops.
Both homeowners and renters insurance exclude certain events and types of damage, which means no payout if they happen. Three buckets cover most exclusions: risks that need a separate policy, items that need special coverage, and situations considered preventable.
Floods and earthquakes fall outside standard homeowners and renters coverage entirely. Homeowners in high-risk areas need a separate policy or add-on to close that gap.
Pests, wear and tear, poor maintenance and intentional acts by the policyholder are all excluded from coverage. Insurers treat these as preventable or within the owner's control, which is exactly why repair and replacement costs fall on you instead of the policy.
Home-based businesses and high-value items like jewelry, fine art or collectibles call for coverage beyond the standard policy. Business losses fall outside what homeowners and renters insurance covers by default, which is why add-on policies or scheduled coverage exist for expensive valuables.
Endorsements extend a standard policy's coverage, and you buy them separately as add-ons. Homeowners and renters policies draw from a similar list of endorsements aimed at valuables, unique risks or special circumstances.
The examples that follow show up in both renters and homeowners policies, but what's actually available depends on your provider and state, so check the specifics before you buy.
Scheduled Personal Property | Extra coverage for high-value items like jewelry, fine art, or electronics beyond standard policy limits |
Identity Theft Protection | Helps cover expenses if your identity is stolen, including legal fees and recovery costs |
Water Backup Coverage | Protection against damage from backed-up drains, sewers, or sump pumps |
Earthquake Coverage | Covers damage caused by earthquakes, often excluded from standard policies |
Flood Insurance | Coverage for flood-related damage, which isn’t part of most base policies |
Business Property Coverage | Extends coverage for home-based business equipment beyond standard limits |
You need homeowners insurance if you own your home and want to protect the structure and your belongings. Renters insurance is for tenants who only need to protect their personal property and liability, not the building itself.
Use the table below to see which policy fits your situation best.
Buy Homeowners Insurance If… | Buy Renters Insurance If… |
|---|---|
You have a mortgage lender requiring proof of insurance. | Your landlord or lease agreement requires proof of renters insurance. |
You own the home, condo, or townhouse you live in. | You rent a house, apartment, or condo. |
You want protection for both the structure and your personal belongings. | You only need coverage for your personal belongings, not the building. |
You’re responsible for repairs or rebuilding if the home is damaged. | Your landlord is responsible for the building’s structure and repairs. |
You want coverage for attached structures, like a garage or deck. | You want liability protection in case someone is injured in your rental. |
If you rent out a property you own, standard homeowners insurance usually won’t cover tenant-related risks. You’ll likely need a landlord insurance policy, which protects the building, provides liability coverage and may cover loss of rental income.
The average cost of renters insurance is $12 per month for $20,000 in personal property coverage, while the average cost of home insurance is $218 per month for $250,000 in dwelling coverage. Although renters insurance seems more affordable, unlike home insurance, it doesn’t cover your dwelling, so premiums are lower.
However, costs for both insurance types can change based various factors, such as your dwelling coverage, state, deductible and more.
For $20,000 in personal property coverage, renters insurance costs $12 per month or $138 per year, but this can increase if you have higher limits. The table below shows how renters insurance costs can change by coverage level.
| $20K Personal Property / $100K Liability | $138 |
| $50K Personal Property / $100K Liability | $229 |
| $100K Personal Property / $100K Liability | $374 |
| $250K Personal Property / $300K Liability | $757 |
To find cheap renters insurance, consider comparing renters insurance quotes and find a provider that matches your needs and budget effectively.
A home insurance policy with $250,000 in dwelling coverage costs an average of $218 per month or $2,614 per year. Unlike renters insurance, home insurance pays to repair or rebuild your home if it’s damaged due to a covered event, which is why it costs more. But rates can still change based on your coverage limits.
The table shows how rates can change based on your coverage.
| $100K Dwelling / $50K Personal Property / $100K Liability | $1,518 |
| $250K Dwelling / $125K Personal Property / $200K Liability | $2,614 |
| $500K Dwelling / $250K Personal Property / $300K Liability | $4,373 |
| $750K Dwelling / $375K Personal Property / $500K Liability | $6,139 |
| $1MM Dwelling / $500K Personal Property / $1MM Liability | $7,947 |
More coverage isn't automatically better coverage. Weigh what you actually need, compare quotes, and let that guide you to the best home insurance provider that gets the balance between coverage and cost right.
The main difference between renters and homeowners insurance is structural coverage. Only a homeowners policy covers the building itself. Both cover personal belongings, liability and additional living expenses, so understanding these differences helps you choose the right coverage for your living situation.
Renters insurance is different from homeowners insurance in that it doesn’t cover your dwelling or the structure of where you live, only your belongings. We answer common questions about their differences.
Homeowners insurance covers the home’s structure, while renters insurance doesn’t. But both policies also cover your personal belongings, liabilities and additional living expenses.
You can have both homeowners insurance and renters insurance simultaneously, but it's unnecessary and could be redundant. Homeowners insurance is intended for those who own the property they live in, while renters insurance is for tenants who don't own the property.
If you're temporarily renting out part of your home, your homeowners insurance may provide some coverage, but discussing coverage details with your insurer is important.
Homeowners insurance and landlord insurance are different policies designed for distinct purposes. Homeowners insurance is for those who live in their own homes and covers the structure and personal possessions.
Landlord insurance is specifically tailored for property owners who rent out their properties to tenants. It usually covers the structure, liability and loss of rental income, but not the tenants' personal belongings.
Homeowners insurance is more expensive than renters insurance because it covers the entire structure of the home in addition to personal belongings and liability. Renters insurance only covers personal property and liability, not the building itself, which makes it much cheaper.
A building owner's insurance only covers the structure itself, not a renter's personal belongings or liability. Renters insurance protects your possessions and covers you if someone gets injured in your rental unit.
When renting, the tenant is responsible for paying for renters insurance to protect their personal belongings and liability. The landlord pays for insurance that covers the structure of the building itself.
MoneyGeek analyzed quotes from multiple insurance providers across the U.S. using a profile that reflects the average homeowner. The estimate draws on different locations and companies, so homeowners get a reliable sense of what to expect and why comparing rates matters.
Homeowner Profile
This analysis relies on a sample homeowner profile with the following characteristics:
Homeowners Insurance Coverage Details
Unless otherwise specified, this comparison used the following coverage limits to collect quotes:
We also compiled data for policies with broader coverage to determine the best companies for insuring expensive homes, upping limits to $1 million in dwelling coverage, $500,000 in personal property coverage and $1 million in liability coverage.
Mark Fitzpatrick, a licensed Property and Casualty (P&C) Insurance Producer in Connecticut, is MoneyGeek's resident expert in insurance and economics. He has spent nearly a decade covering the market, first at LendingTree and now at MoneyGeek, where he analyzes 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 before earning a master's in economics and international relations from Johns Hopkins University. Before MoneyGeek, he worked in financial risk management at State Street. He's also a five-time “Jeopardy!” champion.
