Why is renters insurance so cheap compared to homeowners insurance?
I rent my current home, but previously I owned and lived in a house. When I was shopping for renters insurance, I was surprised to learn that it was much cheaper than homeowners insurance. Why is this?
Answer provided by
Answered on Mar 08, 2021
Good question! A renters policy is less expensive because it covers less than a homeowners policy does. A renters policy primarily covers a tenant’s personal property and liability. Since a renter doesn’t own the home, they are not responsible for the physical property of the home and other structures; the landlord should cover these on a separate policy.
For more information about the cost of renters insurance, check out this article: What Is the Average Cost of Renters Insurance?.
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Browse by topics
What others are asking
Who pays less for car insurance, and what can I take away from their life circumstances and decisions to secure the cheapest rates for myself?
Who pays the least for car insurance? Is there anything I can do to be like them and also pay less?
Mar 12, 2021
What value do I assign to my second-hand belongings for insurance purposes?
"I have replacement cost coverage for my renters insurance. I'm making an inventory of my belongings, but many of them were bought second-hand. For example, I bought my couch for $350, whereas a similar model that's brand new would cost over $700. Should I list the second-hand price or current retail price of my belongings? "
Apr 08, 2021