Texas Renters Insurance
If you live in an apartment, duplex or rental home, you’ll need renters insurance to protect your contents and personal property and protect yourself from lawsuits. Texas renters insurance pays to repair or replace your personal property. It protects things like your clothes, furniture, and electronics, if they are stolen or damaged. Renters insurance won’t pay to fix the house or apartment building if it’s damaged. The building owner’s insurance policy covers that.
Some landlords might require you to buy renters insurance as a condition of your lease and require certain liability limits. To protect you and your landlord from lawsuits.
Types of Renters Policies
Insurance companies sell two types of renters policies. They have different amounts of coverage.
- Named-perils policies cover property that’s lost or damaged because of events specifically listed in the policy, such as fire and theft. These policies won’t cover losses caused by events that aren’t specifically listed in the policy. Named-perils policies are also called specified perils policies.
- All-risk policies cover every type of loss, unless the policy specifically excludes it. These policies are more expensive than named-perils policies because they cover more losses. All-risk policies are also called comprehensive or open-perils policies.
All renters policies have a total dollar limit. The dollar limit is the most the insurance company will pay out on a claim, even if the cost to repair or replace your property is higher. Make sure you buy a policy with enough coverage to replace your property if it’s stolen or destroyed.
A deductible is the amount of a covered claim that you pay. For example, if you have $25,000 in damages with a $250 deductible, the insurance company will deduct $250 from the amount it pays you.
Texas Renters Insurance Coverages
Renters insurance policies typically include three types of coverages: personal property coverage, loss of use, and personal liability.
- Personal property coverage pays to repair or replace your personal property, up to your policy’s dollar limit. In addition to a total dollar limit, policies may limit payments for certain kinds of property. Renters insurance also covers your luggage and other personal items when you travel. This coverage is usually limited to 10 percent of the amount of your policy or $1,000, whichever is greater.
- Loss of use pays your additional living expenses for things like food and rent if you must temporarily move from your apartment or home. Loss of use coverage is generally limited to 20 percent of a policy’s personal property coverage. For example, if you have $25,000 in personal property coverage, your loss of use coverage would usually be $5,000.
- Personal liability protects you against a claim or lawsuit if someone, other than a household member, is injured in your home. A renters policy typically provides $25,000 in liability coverage and pays your legal costs.
Note: Ask about buying additional coverage if the value of your personal property exceeds your coverage limits. People often buy endorsements to add or increase coverage for jewelry, fine arts, antiques, computers, guns and electronics.
Also consider additional liability coverage if you don’t think the basic limits are high enough. Your landlord might require higher limits if you have potentially dangerous items like a pool or trampoline.
