> Source: https://insurancemonster.com/renters-vs-homeowners-insurance/
> Renters vs homeowners insurance compared: what an HO-4 and an HO-3 each cover, who needs which, and how cost and structure coverage differ in California. Free quotes.
> InsuranceMonster - a brand of Monster Insurance Services, LLC, independent California insurance brokerage (CA DOI Lic. #6020398).

# Renters vs homeowners insurance

The big difference is the building - one covers it, the other does not.

Written by [**Michael Kassing**](https://insurancemonster.com/experts/michael-kassing/), California-licensed insurance broker

Reviewed for accuracy on July 13, 2026 - California license #4445775

[About the author](https://insurancemonster.com/experts/michael-kassing/) - [Verify this license](https://cdicloud.insurance.ca.gov/cal/IndividualNameSearch?handler=Search)

## What each policy covers

*Renters (HO-4) vs homeowners (HO-3) at a glance*

| Coverage | Renters (HO-4) | Homeowners (HO-3) |
| --- | --- | --- |
| The building and structure | No - landlord insures it | Yes |
| Your personal belongings | Yes | Yes |
| Personal liability | Yes | Yes |
| Loss of use / living expenses | Yes | Yes |
| Medical payments to guests | Yes | Yes |
| Flood | No - separate policy | No - separate policy |
| Earthquake | No - separate policy or endorsement | No - separate policy or endorsement |
| Typical cost | Low | Much higher |

## Who needs which

If you rent your home, you need renters insurance - the landlord's policy does not cover your belongings or your liability. If you own your home, you need homeowners insurance to cover the structure you are responsible for. Condo owners are a middle case: an HO-6 covers the interior and belongings while the HOA master policy covers the building shell.

## Why renters insurance costs so much less

The single biggest cost in a homeowners policy is rebuilding the structure. Renters insurance skips that entirely, so it is one of the cheapest policies available. See [California renters insurance](https://insurancemonster.com/california-renters-insurance/) for coverage detail, or [California homeowners insurance](https://insurancemonster.com/california-homeowners-insurance/) if you own.

## Related coverage and guides

- [California Renters Insurance](https://insurancemonster.com/california-renters-insurance/)
- [California Homeowners Insurance](https://insurancemonster.com/california-homeowners-insurance/)
- [California Condo Insurance](https://insurancemonster.com/california-condo-insurance/)

[Get your free quote](https://insurancemonster.com/marketplace.asp)

## Frequently asked questions

### What is the difference between renters and homeowners insurance?

Homeowners insurance covers the building plus your belongings, liability, and living expenses. Renters insurance covers your belongings, liability, and living expenses but not the building, since the landlord insures the structure. That makes renters insurance much cheaper.

### Is renters insurance cheaper than homeowners insurance?

Yes, significantly. Renters insurance does not pay to rebuild a structure, which is the largest cost in a homeowners policy, so it is one of the least expensive policies you can buy.

### Do renters and homeowners policies both exclude flood and earthquake?

Yes. Both HO-4 and HO-3 policies exclude flood and earthquake. In California these are added through a separate flood policy and a separate earthquake policy or endorsement.

### What about condo insurance?

A condo owner uses an HO-6, which covers the unit interior, belongings, and liability, while the HOA master policy covers the building shell. It sits between renters and homeowners coverage.