Homeowners vs. Renters Insurance: What’s the Difference?
If you own a home in the Shreveport/Bossier or greater Ark-La-Tex area, you know that it’s important to have a standard homeowners policy for when an unexpected event causes property damage.
You need the type of insurance coverage that will make sure you don’t end up paying unexpected costs out-of-pocket. You also want affordable insurance policies.
But what if you rent? Do you need renters insurance?
While landlords utilize landlord policies (a.k.a landlord insurance) to cover their rental property structure much as a homeowner would, the answer is yes.
If you decide to live in a short or long-term rental, then rental property insurance is just as important as homeowners insurance. Renters insurance can protect your belongings in the event of property damage resulting from common perils like fire, flood, or theft.
It can also provide additional insurance like liability protection/coverage in case someone is injured on your property.
Landlords can even require you to pay renters insurance costs as part of your lease or rental agreement.
In this blog post, we identify the difference between homeowners and renters insurance. We’ll also explain what each type of policy covers and how much it costs.
What is Homeowners Insurance?
Homeowners insurance is a type of property insurance that covers the structure of your home, as well as your personal belongings. Homeowners insurance also includes personal liability coverage, which protects you in the event someone is injured on your property.
The cost of homeowners insurance varies depending on a number of factors, including the value of your home, the type of dwelling, your location, and your personal risk factors.
What is Renters Insurance?
Renters insurance is a type of property insurance that covers your personal items in the event of a loss. Renters insurance also includes personal liability coverage, which protects you in the event someone is injured on your property and incurs medical bills.
The cost of renters insurance is relatively low, and it’s a great way to protect your belongings and your financial security.
What Does Homeowners Insurance Cover?
Homeowners insurance typically covers the following:
- The structure of your home
- Your personal belongings
- Liability coverage
- Additional or Temporary Living expenses
The Structure of Your Home
Homeowners insurance typically covers the cost to rebuild your home (stated within the dwelling coverage section of your policy) when your home is damaged or destroyed by a covered peril. Covered perils can include fire, windstorm, hail, flood, and theft.
Your Personal Belongings
Homeowners insurance usually includes personal property coverage which typically covers your personal belongings, such as furniture, appliances, electronics, and clothing. The amount of coverage you have for your personal belongings will depend on the value of your belongings and the limits of your policy.
Liability Coverage
Liability coverage is an important part of homeowners insurance. It protects you in the event someone is injured on your property. For example, if someone trips and falls on your front porch, liability coverage can pay for their medical expenses.
What Does Renters Insurance Cover?
Short-term rentals refer to renting a home or apartment for a period of less than 30 days. While most renters’ insurance policies do cover short-term rentals, there are some important things to keep in mind.
Renters policies typically cover the following for short-term rentals or long-term rentals.
Your Personal Belongings
Renters insurance also typically covers your personal belongings, such as furniture, appliances, electronics, and clothing. The amount of coverage you have for your personal belongings will depend on the value of your belongings and the limits of your policy.
Liability Coverage
Liability coverage is an important part of renters insurance. It protects you in the event someone is injured on your property. For example, if someone trips and falls on your front porch, liability coverage can pay for their medical expenses.
What are the Costs?
The cost for homeowners insurance and renters insurance varies depending on a number of factors, including the value of your home or belongings, the type of dwelling, your location, and your personal risk factors.
In general, homeowners insurance is more expensive than renters insurance. However, the cost of both types of insurance is relatively low, and it’s a great way to protect your belongings and your financial security.
Whether you have homeowners or renters insurance coverage, you want to make certain you have enough.
Sometimes additional coverage will help you better prevent any financial loss in the event of a claim if your homeowners or renters policy doesn’t cover certain conditions or amounts.
You also want to make sure you view insurance as financial protection, and not a sunk cost when it comes to paying for an insurance premium.
How to Get Homeowners or Renters Insurance
To get homeowners or renters insurance, you can contact your independent local insurance agency, like Watley Insurance Group. We help you with multiple quotes from multiple insurance carriers. We help to compare the coverage limits, deductibles, and premiums of different policies.
When comparing quotes, be sure to compare the following:
- Coverage limits. The coverage limits on a homeowners or renters insurance policy determine how much money the insurance company will pay in the event of a loss. Make sure the coverage limits on the policy you choose are high enough to cover the value of your belongings.
- Deductibles. The deductible on a homeowners or renters insurance policy is the amount of money you’ll have to pay out-of-pocket before the insurance company will pay for a loss. Higher deductibles will lower your premiums, but you’ll have to pay more out-of-pocket in the event of a loss.
- Premiums. The premium is the cost of the insurance policy. Premiums will vary depending on the coverage limits, deductible, and other factors.
Here are some additional tips for getting homeowners or renters insurance:
- Get multiple quotes. It’s important to get multiple quotes from different insurance companies before you buy a policy. This will help you compare prices and coverage options. As an independent insurance agency, this comes with the territory. We don’t provide one big-box solutions. We have access to a variety of carriers and policies to fit your needs.
- Read the fine print. Before you buy a policy, be sure to read the fine print. This includes the policy’s terms and conditions, exclusions, and deductibles.
- Ask questions. If you have any questions about a policy, be sure to ask the insurance company. They should be able to explain the policy in detail and answer any questions you have.
Whether you are a home owner or renter, homeowners insurance policies or renters insurance policies prove an important part of protecting your home and your belongings.
By following these tips, you can find the best policy for your needs and budget.
Watley Insurance Group Can Help
While we serve the Ark-La-Tex, we specialize in helping those in Shreveport, Bossier City, Benton, Barksdale Air Force Base, Haughton, Keithville, and Blanchard.
If you’re a homeowner or renter in the Shreveport Ark-La-Tex area, contact Watley Insurance Group today to get a quote for homeowners or renters insurance.
We want you to have more than adequate insurance.
Our goal seeks to find the right policy for your needs at an affordable price.
