Renter’s insurance is a useful, usually voluntary, investment created for residents of Highland Village, TX, who rent their living space. It protects your finances in the case of potential liability and losses and provides tremendous peace of mind. Here are some key fundamentals:

• Deductible: If you file a claim, your payout will be the full amount minus your deductible. The deductible is the amount you agree to pay out of pocket before your insurance coverage kicks in.
• Exclusions: The renter’s insurance does not cover damage to the home’s structure or water damage. Your landlord must handle these components. 
• Personal property coverage: Renter’s insurance covers your belongings, like clothing, electronics, and furniture, in case of fire, theft, and other disasters.
• Additional living expenses: If a disaster occurs that your policy covers and forces you to live somewhere else temporarily, your renter’s insurance will cover it.
• Liability coverage: It provides liability coverage for accidental property damage and injuries you cause to others. This also extends to legal expenses in the event someone sues you. 
• Actual cash value vs replacement cost: When you first get your policy, you must decide between replacement cost and actual cash value (ACV). ACV coverage factors depreciation into the value of your reimbursement. Replacement cost coverage, on the other hand, reimburses you for what your items cost at today’s prices. 
• Optional coverage: It’s possible to add optional coverage for your valuable belongings that is higher than the per-item limit of your policy.

Renter’s insurance is a wise investment that protects your belongings and provides liability coverage. It’s an excellent way for renters to know that they’re protected if disaster strikes. If you have any more questions, our experts at Thompson Insurance Services are happy to help.