What do renters insurance and homeowners insurance have in common?

Renters insurance and homeowners insurance both require a premium payment, which means policyholders must pay a set amount to maintain their coverage. This is a fundamental aspect of any insurance policy as the premium funds the risk pool, providing financial support for claims made by policyholders.

In contrast, homeowners insurance typically covers the structure of a home, providing protection for the physical building, while renters insurance does not cover the structure since renters do not own the property; instead, it focuses on personal property within rented spaces. Regarding personal property, both types of insurance actually cover personal belongings, so they do not exclude this coverage, making the incorrect options unrepresentative of both policies. Lastly, neither type of insurance is mandated by law, making that assertion inaccurate as well. Thus, the relationship related to premium payments is the key similarity regarding both types of insurance.