WHAT IS RENTER'S INSURANCE? DOESN'T MY COMPLEX/LANDLORD HAVE IT?
- No. Complexes and landlords have Property Insurance which covers the BUILDING and structural damage. Renter's Insurance covers the things INSIDE the building.
WHAT DOES RENTER'S INSURANCE COVER?
- Personal Property – the things you own, and your luggage when you travel.
- Loss of Use – living expenses if you move while your apartment is repaired – like rent, food, etc.
- Personal Liability – protects you if someone else is hurt in your home and for legal fees if they sue.
WHAT RISKS DOES RENTER'S INSURANCE COVER?
- Policies can differ. Check yours. Most cover fire, theft, or storms.
WHAT MIGHT BE EXTRA?
- ADDITIONAL HAZARDS – like floods or earthquakes.
- MORE LIABILITY – may be required for certain types of pets, or things like pools or trampolines.
- EXTRA COVERAGE IN GENERAL - for jewelry, art, or electronics – things beyond a typical policy.
- BUSINESS COVERAGE – Home-based businesses or working from home professionals 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