What is renters’ insurance and how does it differ from home insurance?
When renting a home — whether it's an apartment or a house — it's worth thinking not only about the rental agreement and costs, but also about insurance. The two types of insurance in question — renters’ insurance and home (property) insurance — are often confused. Below, we explain the essence of both, their differences and BTA's offer to renters.
What is renters’ insurance?
Renters’ insurance is an insurance policy intended for people who rent an apartment or a house and want to protect their property and third-party liability.
What does renters’ insurance cover?
According to BTA's offer, renters’ insurance can include the following components:
- Your movable property – furniture, household appliances, electronics – protection against theft, fire, water leakage and other external influences.
- Third-party liability — if, while living in rented accommodation, you accidentally cause damage to the flat or your neighbours (e.g. water leakage from your flat damages your neighbour's property).
- Additional risks or services — for example, the "Home Assistance" service, which allows you to get help from a plumber, locksmith or carpenter in an emergency.
Who is it intended for?
BTA notes: renters’ insurance is suitable for students, young people, families — renters who want to insure their property and liability.
What is home (property) insurance?
Home insurance (also known as property insurance) is intended for those who own their own home, such as apartment or house owners. This type of insurance protects the building itself and its furnishings from various types of damage or unforeseen events.
What does home insurance cover?
- Real estate structures and furnishings – for example, walls, roofs, floors, utilities — damage caused by natural disasters, fire, vandalism, water leaks or other risks described in the insurance contract.
- Household goods or furniture, appliances and other movable property such as clothing, footwear, dishes, etc.
- Additional services that can be agreed upon in the insurance policy, such as home assistance, credit payment insurance, damage caused by tenants.
- At the same time, home insurance may be required to secure bank loans.
Key differences between renters’ and home insurance
Aspect | Renters’ insurance | Home/property insurance |
Insured object | Renters’ property and renters’ liability, including damage caused by the renter to the rented property. | Building or flat – walls, structures, utilities, as well as property. |
Movable property coverage | Included – damage to and theft of the renters’ property. | All property located in the insured property is insured. |
Third-party liability | Included – damage caused to neighbours if the “Optimal” plan is selected. | May be included. |
Target group | Renters — those who rent an apartment or a house and want to protect their personal property and their liability for damage caused to property owners or neighbours. | Home or apartment owners who want to protect both their real estate and their belongings or household goods. |
Why is it worthwhile for renters to purchase renters’ insurance?
- If you rent an apartment, you will protect your belongings from unexpected damage or theft.
- If you cause accidental damage to the landlord or neighbours (e.g. water leakage due to an unclosed tap), third-party liability coverage can save you a lot of money.
- A relatively cheaper solution than full home insurance.
- BTA's solution allows you to choose coverage that suits your situation.
In conclusion
In rental situations, it is important to understand that not all risks are the same. If you rent an apartment, renters’ insurance is a resource that helps you feel safe. If you are a homeowner, home insurance provides broader protection and more extensive insurance options, allowing you to choose the risk coverage that is right for you.
Choose the type of insurance that suits your needs and ensure your peace of mind and security.
You can find out more about BTA renters’ insurance here: BTA Renters' Insurance
