Differences Between Homeowners Insurance and Renters Insurance

Although homeowners and renters insurance policies provide similar kinds of coverage by offering a policyholder financial protection in the event that an issue arises with a home, there are some clear differences between them. Because a renter does not own their residence, they do not need the same type of protection as someone who owns a home. If you are located in San Diego, California, and want to know more about the type of insurance needed to best protect your residence, Windfall Insurance Services Inc. can help. Continue reading to understand the differences between homeowners and rental insurance.

Essential Information: Renters Insurance

The purpose of renters insurance is to help protect occupants of a residence that do not actually own the property. It is paid by a tenant and helps to cover any damages to or theft of a policyholder’s personal belongings. A rental insurance policy will compensate a renter for the cost of replacing any damaged or stolen items on the property. The property owner’s insurance policy will not typically cover the tenant or their lost or damaged belongings, so rental insurance is intended to help the tenant. Rental insurance may not always be required by a landlord, but in many cases, they may insist a tenant have it in their lease agreement.

The Basics of Homeowners Insurance

Homeowners insurance helps to protect policyholders that own their own home, and it covers against damages to the structure of a home, (and damage to any other buildings on the property), and the owners personal belongings. It also includes liability coverage if someone else gets injured on your property. The owner of the home is responsible for taking out a homeowners insurance policy, and it is often required if a mortgage is used to purchase the property. Homeowners insurance is usually more expensive than renters insurance in order to account for the cost of dwelling coverage, and the insurance amount will typically cover the cost of replacing the home itself, in addition to any personal property within it, such as furniture, appliances, clothing, etc.

How Much Do The Policies Cost?

Both homeowners and renters insurance will vary according to the area that you live. Insurance carriers will look at several factors when determining the cost of a policy, including:

• The location that your reside in
• The different types of coverage components that you require
• Your credit score
• The overall value of your personal property
• Your past claims history

Having the appropriate type of insurance gives you the peace of mind that your home and your personal valuables are protected. If you live in and around San Diego, California, and want to know more about the insurance options available to you, contact Windfall Insurance Services Inc. for a consultation.