It is hard to understand why so many people who rent apartments choose not to take out a cheap renters policy to protect their valuables. Maybe they do not realize just how affordable Texas renters insurance really is. Compared to a standard homeowner’s insurance policy a renter policy is a real bargain. Usually, you can get a policy for no more than a few hundred dollars.
Renters insurance covers your personal possessions against loss or damage. Like homeowner’s insurance, it covers such things as televisions, furniture, computer equipment and clothes. Unlike homeowner’s insurance it does not cover any damage or loss to the actual dwelling. Your landlord is responsible for the building and you are only responsible for the contents inside your apartment or other living area.
Your renters policy also protects you against liability claims. If someone who is visiting slips on your wet kitchen floor and breaks an arm, you may be found to be liable for her injuries. Most standard policies provide coverage that will pay for the medical bills and other legitimate expenses when you are found to be liable for bodily injury or property damage of a visitor to your home.
If your home becomes unlivable for any number of reasons and you are forced to vacate and seek temporary lodging, your insurance will pay for a hotel room up to the limit of the policy. Usually, temporary housing is limited to the time it takes to make the necessary repairs so the home becomes habitable. However, if the rental house you are living in burns to the ground and you stop paying rent, you cannot use the disaster to have your new apartment’s rent paid for the next year.
Renters insurance is designed to restore you to the position you were in before a loss occurs. It is valuable because it keeps you from having to absorb a major loss on your own and allows you to get back on your own two feet.