Homeowners vs. Renters Insurance Calculator
What this insurance calculator does: it lays out the parts of a homeowners (HO-3) policy and a renters (HO-4) policy, shows what each part covers, and estimates how the premium is split between them. It includes:
1. A side-by-side comparison of homeowners and renters coverage, or either one on its own
2. A coverage table: dwelling, other structures, personal property, loss of use, liability, and medical payments
3. The 80% rule check: whether dwelling coverage is at least 80% of the rebuild cost, and what a sample claim would pay
4. Replacement cost vs actual cash value: the difference depreciation makes to a renter’s claim
The premiums are illustrative. They come from SaveXpert’s own simple rate model, not from any insurer or published average, and real quotes can be very different. Use the tool to understand how coverage works and how choices move the price, not to predict a quote.
Compare both policies side-by-side, size every coverage, and check the 80% replacement-cost rule for dwelling claims
| Coverage Component | Limit / Value | Est. Cost Share |
|---|---|---|
| Enter data to view breakdown | ||
How to use the insurance calculator
1. Choose Compare Both, Homeowners, or Renters, and your currency.
2. Under Coverage Details, enter Dwelling / Rebuild Coverage (homeowners), Personal Property, Liability Coverage, and Deductible. Blank fields use the grey defaults.
3. Pick a Valuation Basis: Replacement Cost (RCV) or Actual Cash Value (ACV). A Risk / Location Factor above 1.0 raises the estimate for higher-risk areas.
4. Under advanced options, enter the Home Rebuild Cost to run the 80% check, and optionally Other Structures and Loss of Use. Then enter a sample claim to see the payout.
5. Save with Copy Summary, Export CSV, Export PDF, or Copy Shareable Link.
How to read your results
| Result | What it means |
|---|---|
| Estimated premium | The model’s yearly and monthly figure for the coverage entered. Illustrative only. |
| Cost per $1k | Premium ÷ thousands of dollars of property coverage, for comparing setups. |
| Deductible Risk | What you’d pay out of pocket on each claim before coverage starts. |
| Policy Coverage Summary | Each coverage (A to F) with its limit and its share of the estimated premium. |
| 80% check | Dwelling coverage as a share of rebuild cost, and the payout on a sample claim under a simplified version of the rule. |
Worked example: a $300,000 dwelling and a $400,000 rebuild cost
Here’s one example run through Compare Both: $300,000 dwelling coverage, $30,000 personal property, $100,000 liability, replacement cost, a $1,000 homeowners deductible, and a $500 renters deductible.
| Coverage | Homeowners (HO-3) | Renters (HO-4) |
|---|---|---|
| Dwelling (A) | $300,000 | — (landlord’s policy) |
| Other structures (B) | $30,000 (10% of A) | — |
| Personal property (C) | $30,000 | $30,000 |
| Loss of use (D) | $60,000 (20% of A) | $12,000 (40% of C) |
| Liability (E) / medical (F) | $100,000 / $5,000 | $100,000 / $1,000 |
| Model estimate | $1,836 a year | $264 a year |
In the model, most of the homeowners’ estimate ($1,449) comes from insuring the dwelling itself, which is why it’s several times the renters figure.
Now the 80% check. If this home would cost $400,000 to rebuild, the $300,000 of coverage is 75% of the rebuild cost, below the 80% line.
🧮 How this was calculated
- 80% of rebuild cost: $400,000 × 80% = $320,000 needed for full replacement cost
- Coverage carried as a share of that: $300,000 ÷ $320,000 = 93.75%
- Sample $100,000 dwelling claim: $100,000 × 93.75% = $93,750, minus the $1,000 deductible = $92,750
- If coverage met the 80% line, the payout would be $100,000 − $1,000 = $99,000. The difference is $6,250
Assumptions: simplified 80% rule · the claim is under the coverage limit · policy pays replacement cost when the condition is met. Real policies differ; some pay the greater of this amount or actual cash value.
Example figures are illustrative, not averages or statistics.
Methodology and sources
1. Coverages: when left blank, other structures default to 10% of dwelling, loss of use to 20% of dwelling (homeowners) or 40% of personal property (renters), and personal property to 50% of dwelling for homeowners. These mirror common policy setups, but every policy sets its own limits.
2. Premium model: each coverage is multiplied by a fixed illustrative rate, plus a base fee; replacement cost adds 15% to the property parts; the deductible and the risk factor scale the total. The rates are SaveXpert’s own and are not calibrated to any insurer, state, or published average.
3. 80% rule: payout = claim × (dwelling coverage ÷ 80% of rebuild cost), capped at 100%, minus the deductible. The NAIC’s consumer guide to home insurance explains replacement cost, actual cash value, and the main coverage parts.
4. Renters insurance: the NAIC explains that a landlord’s policy generally covers the building, not tenants’ belongings or liability.
5. Not included: flood and earthquake coverage (usually separate policies), special limits on jewelry and similar items, and state-specific rules.
Frequently Asked Questions
1. What is the main difference between homeowners (HO-3) and renters (HO-4) insurance?
Ans: A homeowners policy covers the building, other structures, your belongings, liability, and extra living costs if the home can’t be lived in. A renters policy covers belongings, liability, and extra living costs, but not the building, which is the landlord’s to insure.
2. What is the difference between Replacement Cost Value (RCV) and Actual Cash Value (ACV)?
Ans: Actual Cash Value (ACV) reimburses you for the depreciated market value of an item at the time of loss. Replacement Cost Value (RCV) reimburses you the full cost required to buy a brand-new replacement at today’s retail price without deducting depreciation.
3. How much personal liability coverage should I carry?
Ans: A standard financial rule of thumb is to carry enough personal liability insurance to match or exceed your total net worth, protecting your assets from third-party lawsuits and bodily injury claims.
4. What is the 80% rule in home insurance?
Ans: Many policies pay full replacement cost on dwelling claims only if the home is insured for at least 80% of its rebuild cost. Below that, the payout can be reduced in proportion. In the example, coverage of 75% of rebuild cost cuts a $100,000 claim’s payout by $6,250.
5. Why is rebuild cost different from market value?
Ans: Market value includes the land and local demand, while rebuild cost is the labor and materials to reconstruct the building. The land isn’t destroyed in a fire, so dwelling coverage is based on rebuild cost, which can be higher or lower than the sale price.
6. Does a higher deductible lower the premium?
Ans: Usually, because you take on more of each claim. In this calculator’s model, raising the homeowners deductible from $1,000 to $2,500 lowers the estimate from $1,836 to $1,689. The NAIC lists the deductible among the factors to compare when shopping.
7. How accurate are the premium estimates?
Ans: They’re rough and illustrative. Real premiums depend on location, the home’s age and construction, claims history, credit-based insurance scores where allowed, and the insurer. Quotes from licensed insurers are the only way to know actual prices; the NAIC has tips on comparing homeowners insurance.
Kevin Brown researches personal finance topics using official sources; he is not a licensed financial advisor or mortgage lender. Last reviewed: October 2026.
