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
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?.
avatar
Shannon Martin
Answered on Mar 08, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.
Let Jerry’s experts help you find savings on your car insurance!
No long forms or spam · Get quotes from 40+ carriers
Find insurance savings (100% Free)
rating
4.7/5 Rating on App Store