Final answer:
Homeowners are responsible for paying property taxes and homeowner's insurance, while costs like security deposits, monthly rent, and renter’s insurance are the responsibility of renters. The financial responsibilities of owning a home include not only the mortgage but also ongoing maintenance costs, unexpected repairs, and utility bills.
Step-by-step explanation:
The expenses that must be paid by an individual who owns a home include property taxes and homeowner's insurance. Property taxes are levied by local governments based on the assessed value of the property.
Homeowner's insurance is a form of property insurance that covers losses and damages to an individual's house and assets in the home. Security deposits and rent are typically associated with renting, not owning, a home. Renter's insurance is also a responsibility for tenants, not homeowners.
While owning a home, individuals may utilize an Escrow account where money is set aside to automatically pay for property taxes and homeowner's insurance as part of the monthly mortgage payment. This simplifies budgeting for these recurring costs.
The financial responsibilities of owning versus renting a home vary significantly. Owning a home involves ongoing maintenance costs, unexpected repairs, and utility bills. Moreover, owning a home means a large portion of an individual's discretionary income is typically tied up in this investment.