Category: Insurance Comparisons

Head-to-head comparisons to help you choose — renters vs. homeowners, term vs. whole life, HO-3 vs. HO-5, and more.

  • Flood Insurance vs. Water Damage Coverage

    These cover two different things. Your homeowners policy’s water damage coverage handles sudden internal problems like a burst pipe. Flood insurance handles rising external water — something no homeowners policy ever covers.

    Two Different Things

    By the Home & Dime Editorial Team · Updated 2026

    Homeowners water damage

    • Burst pipes and appliance overflows.
    • Storm rain through a covered roof breach.

    Flood insurance

    • Rising water, storm surge, and overflowing rivers.
    • Sold via the NFIP or private insurers.

    Common exclusions

    • Assuming homeowners covers flooding (it never does)
    • Sewer backup without an endorsement
    • Gradual leaks

    State considerations

    In flood-prone states (Florida, Louisiana, Texas), the gap between these two is where many uninsured losses happen — flood insurance is essential there.

    Frequently asked questions

    Does homeowners insurance cover any flooding?

    No — never. You need separate flood insurance.

    What’s the difference?

    Homeowners = sudden internal water; flood = rising external water.

    Related guides

    Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.

    Keep exploring

    Homeowners coverage · Auto coverage · Deductible calculator · Glossary

  • Homeowners vs. Landlord Insurance

    Homeowners insurance covers a home you live in; landlord insurance (a dwelling or DP-3 policy) covers a property you rent to tenants, with added protections like rental-income loss and landlord liability.

    Different Policies

    By the Home & Dime Editorial Team · Updated 2026

    Homeowners insurance

    • For owner-occupied homes.
    • Covers structure, your belongings, liability, loss of use.

    Landlord insurance

    • For rental properties.
    • Covers the structure and landlord liability.
    • Adds loss of rental income; does NOT cover tenants’ belongings (they need renters insurance).

    Common exclusions

    • Using a homeowners policy on a rental (can void coverage)
    • Tenants’ belongings (their renters policy)
    • Normal wear between tenants

    State considerations

    Renting out a home on a standard homeowners policy can lead to denied claims — insurers require a landlord policy for tenant-occupied properties.

    Frequently asked questions

    Can I use homeowners insurance on a rental?

    No — you need landlord insurance once tenants move in.

    Does landlord insurance cover tenants’ stuff?

    No — tenants need their own renters insurance.

    Related guides

    Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.

    Keep exploring

    Homeowners coverage · Auto coverage · Deductible calculator · Glossary

  • HO-3 vs. HO-5 Homeowners Policies

    HO-3 is the standard homeowners policy (open-peril structure, named-peril contents); HO-5 is a premium policy with open-peril coverage on both structure and contents.

    By the Home & Dime Editorial Team · Updated 2026

    HO-3

    Most common. Structure is open-peril; belongings are named-peril; usually ACV or RCV on contents.

    HO-5

    Broader — open-peril on both structure and belongings, typically replacement cost. Costs more.

    Frequently asked questions

    Is HO-5 worth it?

    For newer or higher-value homes wanting the broadest coverage, often yes.

    What’s the main difference?

    HO-5 covers your belongings on an open-peril basis; HO-3 doesn’t.

    Related guides

    Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.

    Keep exploring

    Homeowners coverage · Auto coverage · Deductible calculator · Glossary

  • Renters vs. Homeowners Insurance

    Homeowners insurance covers the building and your belongings; renters insurance covers only your belongings and liability, because the landlord insures the building.

    By the Home & Dime Editorial Team · Updated 2026

    Renters insurance

    • Your belongings, liability, loss of use.
    • Not the building.

    Homeowners insurance

    • The structure + belongings + liability.

    Frequently asked questions

    Which is cheaper?

    Renters — you’re not insuring the building.

    Do both cover theft?

    Yes.

    Related guides

    Sources: Insurance Information Institute (iii.org); Consumer Financial Protection Bureau; FEMA; state Departments of Insurance. General information, not insurance advice.

    Keep exploring

    Homeowners coverage · Auto coverage · Deductible calculator · Glossary