If living in an apartment or rented house, it is advised by the Texas Department of Insurance to have Renters Insurance for personal property protection. Renters Insurance covers the replacement or repair of furniture, electronics, clothing, and all other property if damaged or burglarized. Renters Insurance does not pay to repair the building, which is covered under the building owner’s insurance policy. Many landlords require the purchasing of renter’s insurance as part of the lease.
Types of Renters Insurance Policies
Insurance firms sell two types of policies:
Named-Perils / Specified-Perils Policies
Named-Perils policies cover damaged or lost property due to the listed events in the policy, like theft or fire. These policies do not cover losses caused by the event that is not listed within the coverage.
All-Risk / Open-Perils Policies
On the other hand, All-Risk policies manage all losses, unless excluded in the policy due to a specific event. These policies are costlier than Name-Perils policies because the insurance company is covering more losses.
Every renter’s policy has a total dollar limited associated which is the total amount the insurance company will pay for the claim. Therefore, it is essential to purchase a policy with a high enough dollar amount to replace all property if stolen or damaged.
Renters Insurance Coverage
Renters Insurance policies have three types of coverage:
- Personal Property - Covers repairs or replacement of personal property up to a specified dollar amount as well as luggage and personal items while traveling.
- Loss of Use - Pays the additional living expenses like rent and food if temporarily moved from a house or apartment.
- Personal Liability - Protects against a lawsuit if there is an injury within the home.
If you are in the market for purchasing renter’s insurance, contact Assets Management Group by stopping by the Texas office or calling today! Assets Management Group can help you learn about your options and get you signed up for a policy that fits your budget.