What's the difference between homeowners and renters insurance?

Both protect your stuff and your liability, but homeowners insurance also covers the building itself, while renters insurance does not. A homeowners policy covers the physical structure, your personal belongings, liability if someone is hurt on your property, and additional living expenses if your home becomes uninhabitable. Renters insurance skips the structure — your landlord insures that — and instead covers your personal belongings, your liability, and temporary living costs after a covered loss like a fire or theft. Renters insurance is remarkably cheap, often $15–$25 a month, and many tenants skip it wrongly assuming the landlord's policy protects their possessions; it doesn't. If you rent, get a policy. If you own, make sure your dwelling coverage reflects the cost to rebuild, not the market price of the home, which includes land value that doesn't burn down.