While they sound similar, there are some important distinctions that can help you choose the right coverage and avoid costly surprises later.
When you start shopping for property insurance, one of the first things you might notice is the interchangeable use of terms like homeowners insurance and home insurance, but there are some important distinctions between the two.
What Is “Homeowners Insurance”?
Homeowners insurance is a type of property insurance designed for people who own and live in their homes. It typically includes coverage for:
• The structure of your home (walls, roof, foundation, attached structures)
• Personal belongings (furniture, appliances, electronics, clothing)
• Liability protection if someone is injured on your property
• Additional living expenses if you need temporary housing after a covered loss
Mortgage lenders almost always require homeowners insurance, since it protects both your investment and theirs.
What Do People Mean by “Home Insurance”?
In everyday conversations, home insurance is often used as a shorthand for homeowners insurance. However, it can also refer more broadly to insurance products that protect different types of residences, such as:
• Condo insurance (HO-6 policies) – Covers your belongings and interior walls, while the condo association covers the building structure.
• Renters insurance (HO-4 policies) – Covers personal belongings and liability for tenants, but not the building itself.
• Landlord or rental property insurance (DP policies) – Covers the structure and liability for rental properties but not the tenant’s belongings.
So, while home insurance and homeowners insurance are sometimes used interchangeably, home insurance can be a catch-all term for various property-related policies.
Conclusion
Understanding the differences between homeowners insurance, home insurance, and other property-related policies helps you avoid gaps in coverage. Think of homeowners insurance as the specific policy that protects you as a homeowner, while home insurance can refer to a range of property coverages depending on your situation.
If you’re unsure what you need, start by reviewing your property type and risks, then work with a trusted insurance agent to build a plan that keeps your home—and your peace of mind—protected.