Renters insurance that covers the cost to repair or replace clothes, furniture, and electronics should be among the first things to consider when renting a new place.
Some Texas landlords require renters to have the insurance as a condition of your lease. According to the Texas Department of Insurance, renters have two types of insurance policies with differing amounts of coverage.
One is a named-perils or specified perils policy. This plan covers property that is lost or damaged because of specific listed events, such as fire and theft. However, this policy does not cover losses caused by circumstances not explicitly stated.
Another is an all-risk policy, also called a comprehensive or open-perils policy, which covers every type of loss unless the plan specifically excludes it. These policies generally have higher premiums than named-perils plans, but they also cover additional losses.
Since renter’s insurance policies have a maximum dollar limit for claims, renters should select a plan with a dollar limit that will cover the cost of damaged or stolen property.
Renters should consider whether they need “replacement cost” or “actual cash value” coverage. Actual cash value coverage compensates renters for the current value of the property, not the original purchase price. Replacement cost coverage pays to replace the item at its current cost.
Additional options include a loss of use plan that pays food and rent expenses if you have to move your home temporarily. Another option is personal liability, which protects you against a claim or lawsuit from someone injured in your home.
Regardless of which policy you choose, the experts at Robnett Integra Insurance Services in Brownwood, TX recommend renters create an inventory of their personal belongings. Creating such a list will make it easier to file a claim in the event a tragedy strikes.
Give Robnett Integra Insurance Services in Brownwood, TX a call to discuss coverage options, including renters, home, auto insurance, and more.