If you’re moving into a new place, one of the most important financial decisions is choosing the right insurance. But should you get homeowners insurance or renters insurance? These two policies may sound similar, but they cover very different things.
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What Is Homeowners Insurance?
Homeowners insurance is designed for people who own their home. It covers:
•The structure of the house – walls, roof, floors, built-in appliances.
•Personal belongings inside the home (furniture, clothes, electronics).
•Liability protection if someone gets injured on your property.
•Additional living expenses if you need to move out temporarily after a covered loss (like a fire).
Homeowners insurance is often required by mortgage lenders to protect the property.
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What Is Renters Insurance?
Renters insurance is for people who rent their home or apartment. It does not cover the building itself—that’s the landlord’s responsibility. Instead, it covers:
•Your personal belongings (clothes, electronics, furniture).
•Liability protection if you cause accidental damage or if someone is injured in your rental.
•Living expenses if your rental becomes uninhabitable due to a covered event.
Renters insurance is usually much cheaper than homeowners insurance because it only covers your possessions and liability, not the building.
Which One Do You Need?
•If you own your home, you’ll need homeowners insurance to protect both the structure and everything inside.
•If you rent, renters insurance is usually enough—your landlord’s insurance takes care of the building itself.
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Bottom Line
Both policies provide important financial protection, but they serve different purposes. Homeowners insurance protects your property and belongings, while renters insurance focuses only on your possessions and liability.