Homeowners insurance versus renters insurance:

You're Injured, Now What?

An update to keep you informed on personal injury situations.

When asked what the difference is between homeowners and renters insurance, most people would simply cite the eligibility requirement that to hold a homeowners policy you must be a homeowner and to hold renters insurance you must be a renter. While this is true, and quite self-explanatory, it is not the only significant difference between the two policies. The focus and coverage of both policies are innately different. Renters insurance focuses on the possessions of the renter and covers the theft and destruction of items belonging to the policy holder. This means that the policy covers what’s inside a rented space but not the building itself. A homeowner’s policy is similar to car insurance as it covers not only the possessions of the policy holder but also damages to the structure itself. In addition, homeowner’s insurance also provides liability coverage for all household members whether an incident occurs on or off the homeowner’s property. This kind of policy provides umbrella coverage to protect you from accidents and negligence caused by either yourself or any household members. Household members may also include your pets.  For example, if you are running with your dogs at the park and one of them bites a fellow pedestrian causing serious damage, your homeowner’s policy would cover the incident. Even though the incident did not occur at your home, you would still be covered because your dog is seen as a household member and the accident is thought of as an unforeseen event. Basically, homeowners insurance covers any kind of accident caused by a household member while also protecting the policy holder from outside issues such as theft, fire, natural disasters, and any damages to the home.