​RENTER'S INSURANCE

WHAT IS RENTER'S INSURANCE? DOESN'T MY COMPLEX/LANDLORD HAVE IT?

  • Complexes and landlords have Property Insurance which covers the building and structural damage.  Tenant's must purchase renter's insurance to cover personal property inside their homes, as complexes and landords are not responsible for reimbursing tenants for private property like furniture, electronics, or jewelry. 

WHAT DOES RENTER'S INSURANCE COVER?

  • Personal Property – furniture, expensive electronics, jewelry, and art.
  • Loss of Use – moving costs while your aparment is being reparied, rent, and food.
  • Personal Liability – protects you if someone else is hurt in your home by covering legal fees if they sue.

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WHAT RISKS DOES RENTER'S INSURANCE COVER? 

  • Talk to your insurance provider as policies can vary. Most cover fire, theft, or storms.

WHAT MIGHT BE EXTRA?

  • ADDITIONAL HAZARDS – floods or earthquakes.
  • MORE LIABILITY – may be required for certain types of pets, or things like pools or trampolines.
  • EXTRA COVERAGE –  policies have limits on items, talk to your insurance provider to obtain additional coverage for items beyond a typical policy.
  • BUSINESS COVERAGE – Home-based businesses or professionals with home offices might need more coverage for business-related equipment.

WHAT DOES RENTER'S INSURANCE PAY FOR?

            There are TWO kinds of polices:

  • ACTUAL CASH VALUE -  pays you for the ORIGINAL COST minus DEPRECIATION (age and wear and tear) – you get paid for what a 10-year-old TV is worth NOW, not for a new TV.
  • REPLACEMENT VALUE – provides the amount to replace your belongings with new.

DON'T FORGET THE DEDUCTIBLES AND DOLLAR LIMITS!

  • DEDUCTIBLES are the amount you have to pay before the policy pays you. If you have a $1500 policy with a $250 deductible, you will only get $1250.
  • DOLLAR LIMITS – There's a maximum insurance will pay for some items. Common limits are:
    • $100 for cash on hand
    • $500 for jewelry
    • $1000 or 10% of property coverage for travel claims

HOW DO YOU KNOW WHAT YOU HAVE TO CLAIM?

  • Make a list!
  • Take pictures or video – including inside drawers!
  • Back up the photos! Save your photos, videos, and/or list to an off-site, fireproof location or cloud drive.

Learn more about renter's insurance at: 

Texas Department of Insurance
Insurance Information Institute