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Renters vs. Homeowners Insurance: 3 Differences You Should Know

Are you considering buying a home for the first time? Or maybe you’re downsizing, selling your home and moving into an apartment? Whether you’re a renter becoming a homeowner, or a homeowner becoming a renter, you have a lot to think about.

As far as insurance is concerned, be sure you understand the type of insurance you’ll need. In this edition of the Grange Insurance Association blog, we’ll be diving into the key differences between renters and homeowners insurance.


Homeowners insurance covers an entire home, which impacts the price of your coverage. Homeowners generally tend to have more personal belongings in addition to more square footage, both of which can drive up the cost of coverage. To put it simply, homeowners insurance is more expensive than renters insurance.

What’s Covered

When you rent an apartment, you don’t own the physical space, so it’s not your responsibility to insure the actual structure of your dwelling. Instead, renters insurance is focused on protecting your possessions. It also covers your liability in the unfortunate event that a visitor is injured on the premises.

With homeowners insurance, however, you’re insuring your possessions and the structure of your home. As with renters insurance, a homeowners policy covers your liability in the event that a visitor is injured on the premises. For a brief overview of what homeowners insurance covers, be sure to check out this video below. For specific questions about what your policy does and does not cover, consult your independent agent for guidance.

Mandatory vs. Optional

Going with or without homeowners insurance?

In some cases, you can legally own a home without homeowners insurance. However, this generally only applies if you own the home outright. If you are financing your home with a mortgage, you will most likely be required to have home insurance coverage. Be aware that if you choose to go without homeowners insurance, you assume all of the risk in the event of a loss.

Going with or without renters insurance?

Some landlords do require renters insurance, but certainly not all. Generally, as a renter, whether or not you have renters insurance is entirely up to you. The more valuable your personal belongings, the more important it is to make sure you protect them. Plus, renters insurance can cost as little as $10 a month, so in most cases, the monthly investment is well worth the prospect of losing your belongings to the unexpected, such as a fire or a storm.

Exploring Your Options

If you’d like to explore your coverage options, one of our local agents in California, Colorado, Idaho, Oregon, Washington, or Wyoming will be happy to give you the personalized attention you deserve. Learn more about our policies for both renters insurance and homeowners insurance, and reach out to us with any questions you may have.

The content available via is for informational purposes only and may not be used for any other purpose. Content provided or expressed on, including that of third parties, may not reflect Grange Insurance Association’s (GIA) policies or conform to any agreement you may have with GIA and its subsidiary companies. Please contact a licensed insurance agent to obtain particular advice.

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