Whether you are taking your first apartment on rent or this is your long-term rental residence, renters insurance is one of the best ways for tenants to receive protection for all their belongings. However, many renters in Texas are still unsure how renters’ insurance works and what does it cover? Also, do you need it? We’ll answer these and other questions in this article.
What Does Renters Insurance Cover?
While your landlord may have insurance coverage, but that coverage does not protect your personal belongings. That’s where renters insurance comes in.
If your home or building is hit by a natural disaster, causing damage to your personal belongings, the landlord’s insurance will only pay for repair to the property. Your renter’s insurance will replace damaged personal items, like a computer, television, microwave etc.
While the disasters covered by renters insurance policies may vary from one insurer to the next, they usually include damage caused by theft, fire, civil unrest, riots, leaks, storms etc. Similar to homeowners policies, your renter’s insurance will cover the outside of your dwelling too.
Basic Renters Insurance Coverage
The basic renter’s insurance policy will generally cover the following:
Personal property – Usually, this will cover furniture, personal belongings, clothing and electronics. If there is a fire, for instance, in the building, and your furniture is burnt, the policy will help replace it.
Loss of use – This will cover the expense of a place to stay while your current place of residence is currently unavailable. For instance, in the event of a fire, you will have to leave the rental property and can only return after repairs are completed. The policy will ensure that you have the funds to stay elsewhere.
Personal Liability – The policy will cover injuries that people have sustained when on your property. It will also cover any legal fees if you are sued. It could be anything from medical bills to cover the injuries to paying a settlement amount. It may also cover repairs if something in your home caused damage to the home next door.
Optional Renters Insurance Coverages
Apart from the basic coverage offered, there are many other optional coverages you can add. One of these worth considering is additional coverage for other disasters. Usually, these will cover disasters that are not listed in the basic insurance policy. Most policies in Texas don’t cover floods, which is why you might want to purchase flood insurance separately.
You will also want special or extra coverage for expensive items like electronics and jewelry. While the policy will most likely cover these things, if they are particularly valuable, it may exceed the current limit of the basic policy. That’s why getting additional coverage is so important for these types of things.
Renters insurance can mean a lot for a person renting an apartment or home. It can protect you against a great deal of financial strain in the event of damage to your personal belongings. However, always shop around to find the best deal for your renter’s insurance.
Contact us today to get a free quote from multiple providers!