How does a homeowners policy fundamentally differ from a renters policy?

A homeowners policy fundamentally differs from a renters policy in that it provides coverage for both the dwelling itself and the personal property within that dwelling. This means that if a homeowner experiences damage to their home from peril, not only is the structure covered, but their personal belongings inside, such as furniture and electronics, are also protected under the policy.

In contrast, a renters policy is designed for individuals who are leasing their living space. This policy does not cover the dwelling itself, as that responsibility falls on the landlord; instead, it primarily focuses on personal property coverage, protecting the tenant's belongings against loss or damage caused by events such as theft, fire, or water damage.

This distinction outlines the primary purpose of each type of policy: homeowners insurance protects both the structure and contents, while renters insurance is strictly focused on protecting personal property without covering the building itself.