Insurance is about planning and preparing for the worst. You never know when a natural disaster will occur or somebody comes along and rips off all your stuff. As a matter a fact, most of us never sit down and consider what would happen if we lost every single thing we own from a tornado or a flood in Texas. Nobody wants to picture this image in their mind, and that’s why there is renters insurance. Young adults, divorcees, students and empty nesters all rent homes, condos and apartments. Luckily, for each of these scenarios, you can protect your belongings with insurance, replace them when they are lost or stolen and get on with your life. Learn how you can benefit from renters insurance and keep your world just a bit safer.
Where to Find Renters Insurance
You can search for renters insurance browsing through the telephone directory, searching the Internet, talking to co-workers, friends and relatives or chatting with insurance agents.
Your sources for locating renters insurance are almost unlimited. However, some methods are easier and return better results. Flipping through the telephone book is time consuming and does not provide a lot of concrete information.
However, the Internet is an excellent resource for finding renters insurance. You can search by insurance company names and go right to their sites and view all kinds of information about the types of coverage they offer.
Most of these insurance sites also offer online price quotes, which is a great way to get a handle on prices. You should also find online insurance reviews from folks just like you to learn about their good and bad experiences with various companies.
Speaking with your neighbors, co-workers and even relatives is a great way to pick up tips about which companies are the best and which ones should be avoided.
Renters Insurance Policies
• An all-risk policy covers all types of loss, unless you purchase a policy that specifically excludes something. Of course, they cost a bit more, but that’s because they insure more types of losses. You establish the set dollar limits for this type of policy. It’s important that you consider a policy with a high enough dollar amount to cover your losses.
• The named-perils policy provides coverage for items that may be damaged or lost in the case of a specific event or peril such as theft or a fire. This policy also works on dollar limits. If repairs or replacement costs exceed your dollar limits on the policy, the insurance won’t cover the extra costs.
• Claim losses on policies are either handled as replacement costs or cash value. It’s important that you know the difference. Cash value is how much the item is actually worth today, and replacement cost is what is would cost you to go out and buy purchase the same identical item.
Coverage Choices for Renters Insurance
• Liability coverage is standard in most renters insurance policies. It covers medical costs if someone should enter your rental and have an accident like tripping on the stairs or the carpeting.
• Personal property coverage is another standard coverage that’s based on dollar limits. So, it’s up to each renter to decide how much coverage is needed based on the costs of replacing personal possessions. Personal possessions include items like computers, cell phones, clothing, furniture, collectibles or other things of value.
• Loss of use is another important renters insurance coverage that’s included in most standard packages. It’s designed to cover temporary rent and food expenses if your rental or apartment becomes unlivable because of a disaster. The amount you receive is normally based on a percentage of your personal property amounts.
Texas Renters Insurance
If you just moved to Texas or are new to the renter scene, you need to understand that many of the property management companies in Texas that rent properties require renters insurance. Even many individual apartment complex owners are requiring renters insurance.
Many of these management companies or property owners won’t rent without it for the simple reason that the whole complex or property could easily go up in flames. This doesn’t just affect the individual that may have accidently started a fire, but everyone is affected.
Regardless of whether the rental company requires you to buy renters insurance or choose to purchase it voluntarily, it offers important benefits to renters and it’s typically reasonable for what you get.
Texas also offers Fair Plan policies. These are policies for qualified applicants that are available when you’ve been rejected for insurance by two or more insurance companies in Texas.
How to Shop for Renters Insurance
• Before choosing a company for renters insurance, it’s a smart idea to make a list of your personal property inventory. This helps to determine how much coverage needs to be purchased in the invent of loss, theft or damage.
• Contact an insurance agent directly or get online insurance quotes for renters insurance. Speaking with an agent in person often provides more information and allows you a chance to ask questions.
• When requesting insurance quotes, always request the same types of coverage and set dollar amounts consistently. Comparing the same coverage is the best and most accurate method to properly compare policies.
• Before purchasing renters insurance with an insurance company, you should check out complaints, customer service records and financial stability and strengths. Always deal with a reputable company.
• You may need to buy additional insurance endorsements if you have special circumstances such as expensive collectibles or are in an area of Texas that has particularly bad storms warranting the need for extra coverage like flood insurance.
• Always provide the most accurate information you have on hand when purchasing any type of insurance coverage. Failure to do so could result in denied insurance or cancelled coverage.
Buying renters insurance is relatively inexpensive when you think about the possibility of having to replace all your belongings. It’s worth taking a few extra minutes to research online, talk to friends and learn insurance terms. Get the renters insurance coverage needed to protect your valuable possessions and keep your piece of mind.