Rental Vs. Renters Insurance: What Is The Difference?

While rental insurance and renters insurance protect rental properties, they are different. For starters, they offer parallel but complementary protection. Also, the premiums for the policies are paid by different people.

In this article, we shall explain the said differences in detail. Before we do that, let’s separate homeowners insurance from the mix.

What Is Homeowners Insurance? How Does It Relate To Rental And Renters Insurance?

The general misconception is that homeowners insurance is broad and often covers rentals. However, that is not true.

Like the name, homeowners insurance protects owner-occupied homes. And while the policy might cover rentals for a limited time, you’ll ultimately need rental insurance (also known as landlord insurance) for a full-fledged rental.

Summarily, homeowners insurance is not designed as commercial protection. For that reason, it has no relationship with rental and renters policies.

That said, let’s delve into the differences between rental and renters insurance.

Also read: 5 Reasons Why It’s Best To Have Home Insurance

3 Differences Between Rental Insurance And Renters Insurance


When you take rental (landlord) insurance, you do so as a landlord to protect your rental house or apartment. In other words, you are the one to pay premiums. At a glance, the policies here might seem similar to homeowners insurance, but they are different.

Unlike homeowners insurance, rental policies include heightened protections. That’s because the homes are treated purely as businesses.

On the other hand, renters insurance doesn’t care about the house or apartment. Instead, it protects the assets of the renter. As a result, the renter is obligated to pay.

Another thing you should know is that landlord insurance is crucial to maintain your rentals. On the other hand, renters insurance isn’t required by law. Regardless, landlords often ask for renters’ insurance before leasing their rentals to tenants.

Bottom line: rental insurance and renters insurance is critical in reducing liabilities for landlords and tenants.


Liability Protection 

This part usually covers expenses for legal and medical proceedings. Say a third party was injured on your insured rental; this policy will protect you from the expenses that might ensue from caring for the injured.

  • Rental insurance: Liability protection is one of the crucial coverage of your insurance as a landlord. As long as the reason for the injury was your fault, expect your insurer to cover the expenses.
  • Renters insurance: Liability protection is also included here. But the insurer will only pay the expenses if the renter is legally liable for the injury.

Property Damage

This part involves expenses for damages to homes due to vandalism and natural disasters (such as floods). It also includes losses on the value of the rentals.

Note: vandalism can include damages from tenants and their appliances. 

  • Rental insurance: since you own the building, you must protect it against all sorts of property damage. In other words, it is also one vital part of your policy.
  • Renters insurance: renters don’t own the apartment.  For that reason, property damage is not included in their coverage. However, during floods, renters can purchase additional policies to protect their properties.

Temporary Living Expenses

This part involves expenses incurred when a rental is undergoing repair. Since no one can stay in a damaged house regardless of vandalism or natural disaster, someone must pay for the inconvenience.

  • Rental insurance: landlords rarely have coverage for temporary living expenses. They don’t live in the rental. So, they don’t need reimbursement for the inconvenience of its damage.
  • Renters insurance: renters often face the backlash of damaged rentals. For that reason, temporary living expenses are a crucial part of their policies. However, the fine details vary from one insurer to another.


Rented out or not, the property always belongs to the landlord. In other words, they stand to lose a lot.

As a result, rental insurance has more coverage than renters insurance. In essence, the former is more expensive than the latter. How much can you expect?

There is no fixed cost. But you can expect to pay an average of $1200-1300 premium monthly for rental insurance. On the other hand, renters will only pay around $15-$30.

Note: you can reduce the outlay if you pay for annual rental insurance instead of the monthly payments.

And that’s it: the differences between rental and renters insurance. If you want more information about home insurance in general, check the posts on our blog!

At Aaron Miller Insurance we’re here for you, and we’ll work to get you the best deal possible. Stay in touch with us at 843-999-0575 or email directly to so that we can make sure your policy is always working for you!

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