What Is The Difference Between Renters And Homeowners Insurance?

Wasatch Preferred in Sandy, UT specializes in homeowners insurance and for all categories of homes. Utah’s Insurance Department has developed detailed provisions of both homeowners and rental insurance policies, advising the Utah citizen of how to analyze these policies. There are dramatic differences in the policies, despite their similarities, which affects their rights as to liability coverage and personal property coverage.

Structure

Homeowner’s insurance covers the house and any other building structures on the homeowner’s property. There are limitations as to coverage, valid claims, and exclusion. Rental insurance does not cover the building containing the rental, which is the responsibility of the landlord. While a fire in the building, damaging the renter’s personal property, is covered by homeowners, but if the fire is caused by the renter, renters liability insurance will cover the damages.

Expense

Renter’s insurance is more affordable, usually less than $50 a month since the renter does not pay for any structures. A homeowners policy costs a bit more because it covers the structure of the home as well as a multitude of other things. 

The reason why renters buy insurance is that the landlord’s policy will not pay for damage to the renter’s personal property even if the renter’s property is stolen.  

Exclusions

Both policies have exclusions such as for earthquakes and floods.

Requirements to Be Insured

Homeowners have no choice but to insure their property as required by their mortgage and financing company. Homeowners have the opportunity of choosing which type of homeowners policy to use which covers fewer perils. Renters are not required to carry insurance. However, landlords could require insurance which would reduce the amount of the premium the landlord would pay for any damage to renters personal property.

Wasatch Preferred’s agents will advise homeowners, landlords, and renters as to the best insurance policy. Please call us or visit our Sandy, UT offices.