Why is renters insurance so cheap compared to homeowners insurance?

Answered by Home Insurance, Car Insurance Expert Shannon on February 18, 2021

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?

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Shannon

Home Insurance, Car Insurance Expert

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?.


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