Renters insurance is an important, yet often overlooked protection that people who rent houses and apartments in Texas should consider. Since homeowners policies held by property owners do not provide coverage for the property of tenants, no payment will be made if a loss occurs to the property occupied by a tenant. It is important for anyone who rents to understand the need to carry a proper rental insurance or personal insurance policy to cover all personal property.  These inexpensive, yet important policies can be obtained from any insurance agency that provides rental policies.

Renters Insurance Policies

Every person who rents a living space should carry some form of renters insurance to protect themselves and their property against loss from a variety of causes. There are two types of renters policies available  in Texas: Named Perils that specifically states which perils are covered; and All Risks that covers all perils other than what has been excluded. Agencies who offer renters insurance say these policies work similarly to the personal property portion of a homeowners policy, paying claims to the tenant for their property damaged or destroy by a covered loss.

Replacement Cost or Actual Cash Value?

Renters insurance policies pay a maximum dollar amount based on the items being insured, the type of policy, and the amount of coverage purchased. One important difference in policies that must be decided ahead of time is whether a person wants coverage for replacement cost or actual cash value of their property. Replacement cost policies reimburse a person for an item based on what it would current cost to replace that item. Actual cash value pays based on what the damaged property was worth at the time it was damaged, less a reduction for depreciation. It is important to know this when purchasing renters or personal insurance, as an actual cash value policy costs less but also pays less after a loss.

What Does Renters Insurance Cover?

Renters insurance agencies say that most of these policies actually provide three important types of renters coverage:

  1. Personal Property Coverage - This type of coverage repairs or replaces covered property up to the policy’s limit for those items. It is important to find out those policy limits and increase them if necessary to provide enough coverage for specific, expensive items.
  2. Personal Liability Coverage - This coverage protects renters against claims or lawsuits made by someone who is injured while at their rented dwelling.
  3. Loss of Use Coverage - This coverage pays an allowance for food and lodging should a tenant be forced out of their rented residence while repairs are being made or a covered loss.

One important factor to understand about renters or personal insurance is the limit of the coverage provided and what specifically is covered. Items can be added to a policy and limits can be increased as necessary; however, renters must be sure that specific items are covered and for the right amount. This is especially significant concerning items such as jewelry, furs, computer equipment, other electronics, and other more expensive items. It is better to add additional coverage, than to not have enough coverage when a loss occurs.

Purchasing a renters insurance policy, or a personal insurance policy designed to cover a renter's property, is an affordable way to protect items in the event of a covered loss. Yet the insurance needs of every person or family are different. It is recommended that renters discuss these type of policies with an experienced Texas renters insurance agency that can write the coverage that is needed!

Looking For A Renters Insurance Agency In Bryan TX?

Jones & Associates Offers Renters Insurance For Your Needs!

Get A Quote At (979) 599-7532!

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