The different types of home insurance: renting vs. ownership

Publish Date: 12 Dec 2021


The different types of home insurance: renting vs. ownership

What does personal property insurance cover exactly?

Home means safety to many of us and to truly feel safe you must have an insurance policy on your home and personal property. No one knows what could happen today or tomorrow and this insurance money could help you pay for repairs caused by an accident. But first what’s the difference between insuring your own home or a home you rent?


What is home insurance?


Just like any other insurance policy, you sign a policy with an insurance company and choose the coverage level you want in exchange for a monthly premium.


Covering personal property is important if your house is rented


What are the types of home insurance?


Home insurance comes in two types: rented property insurance and owned property insurance but there aren’t many differences between the two.


What are some similarities between the two types?


Personal property coverage: the policy covers all of your personal property within the home such as your clothes, furniture, electrical appliances and jewelry. The coverage amount is usually a percentage of the total home insurance policy and this is in the case you’ve also applied for other coverage. This type of coverage is more important if you are renting your home and it determines the overall policy price as you will probably not be able to include other coverages in the policy since you’re only renting.


If you want to know more about property insurance read our article, which to choose property insurance or life insurance?


Civil liability coverage: the policy protects you from legal accountability and pays in case the policy owner causes physical or material harm to a neighbor in the same building.

Additional living costs coverage: if your home is subjected to a major accident such as freshwater pipes bursting, or an electrical fire and you had to temporarily relocate until the damage is fixed then the insurance company will reimburse you for the rent/hotel fees according to the policy agreement.


What are the differences between the two types?


There is only one difference between the two which is that an owned home insurance policy covers damage to the home’s structure itself as in any damage to the walls, ceiling, floors, etc. while insurance policies for rented homes do not cover any of these things because if anything happens to the structure of the house it is up to the owner to pay for the repairs themselves. 

Fire is one of the most included hazards in home insurance policies and property insurance policies in general.

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