What is Covered by Renters Insurance and What Needs a Separate Policy - A Detailed Texas FAQ Guide

Renters insurance offers financial protection to tenants regardless of the type of property you reside in, be it an apartment, a condo, or any type of living space. Some insurance companies may exclude certain coverages, so make sure to read your renters insurance declaration page for all listed exclusions. As a tenant with insurance coverage, it is important that you understand what protections you have under your policy, so you can make adequate preparations against perils that are not covered. For instance, some Texas tenants may not know that renters insurance policies will not protect them against losses resulting from sinkholes, floods, and certain types of disasters.

The FAQs below answer some common questions about what Texas renters insurance covers and does not cover. For questions about the renters insurance claims process and buying renters insurance - speak with a licensed and knowledgeable Texas P&C agent:

LIABILITY COVERAGE

Liability-only renters insurance (also known as: Personal Liability or Renters Coverage E) protects you from claims that result from third-party injury or property damage for which you are found liable. For instance, if you fail to notify the visitors about a pothole on the grounds of the rental property and it leads to an accident, you may be held responsible for bodily injuries and damages to someone else’s property.

Your renters insurance policy will pay for legal costs of attorneys to defend you in lawsuits filed by aggrieved individuals, pay medical expenses of the injured parties, and even cover lost wages if the injured individual missed work.

Texas laws do not mandate you to have renters insurance. However, your rental agreement may have a lease clause requiring renters insurance. In a typical renters insurance policy in Texas, personal liability coverage is limited to $100,000, but if you desire protection from higher liability costs, you may purchase higher coverage limits. One of the advantages of your Texas renters liability coverage is that it does not have renters insurance deductible. So, regardless of what happens - if you are at fault, you have zero out of pocket expenses. As long as the claim fits into your purchased coverage limits.

Note: Besides the standard liability insurance protections of a renters policy, most home insurers in Texas also offer medical payments coverage. Adding an optional Medical payments feature to a standard renters insurance policy allows the insured to file the claim fast, covering medical costs of any third-party regardless of whose fault it was.

There are exemptions to renters' insurance personal liability coverage, and it is important to note them. Your personal liability coverage only applies to third-party claims. It does not cover damage to your properties. In addition, renters policy does not cover you if your liability results from the following scenarios:

• Damages caused by your car, such costs are protected by your car insurance policy
• Liabilities that result from professional dealing. If you are running a business out of your rented property (you may need commercial liability insurance for this)
• Liabilities that result from accidents involving two or more persons living together. You will be covered for injuries resulting from such accidents by your health insurance, while your renters property insurance will cover property damages. Also, roommates’ renters insurance will pay for this type of liability. Renters insurance plan with roommate coverage comes at a higher premium because of the higher possibility of a claim
• Intentional acts that lead to injuries or damages. For instance, your renters insurance liability coverage will not cover you if you deliberately engage in a fight and cause bodily injuries (if you are sued, you may have to pay out-of-pocket).

Tenants with no renters insurance will bear the cost of injuries they inflict on others. If you are interested in renters insurance, speak with a TX-licensed P&C insurance agent. A knowledgeable and licensed insurance agent with access to multiple insurers can get you the cheapest renters insurance in Texas based on your needs.

Does Renters Insurance Cover Personal Injury?

Yes, Texas renters insurance covers personal injury within your rented property under personal liability coverage. However, such coverage is limited to third-party injuries. Renters insurance will cover medical bills and also pay the legal fees if the injured party should file a lawsuit against you. Data from the United States Courts showed a total of 19,445 civil cases in Texas between 2017 and 2021.

If in addition to personal liability you also have an Accidental Medical Payments Coverage, then any third party injury and its associated medical expenses are covered regardless of fault - as long as the event occurred on the premises of the insured rental property.

As a policyholder, your Texas renters insurance will pay your legal bills and any punitive damage the court may impose but will not cover your medical expenses if you are injured. Your personal medical bills are covered by your health insurance. The property owner’s landlord insurance will pay your medical bills if you sustain injury due to their negligence.

PROPERTY COVERAGE

Unlike the homeowners insurance, which covers the whole building (or unit) and its contents, your TX renters insurance will cover damage only to your personal belongings, using its Personal Property Coverage.

NOTE: When insuring all your possessions, make sure to valuate them according to their Replacement Cost Value (RCV) and not the Actual Cash Value (ACV). Although a bit more expensive, replacement cost coverage is usually a better choice, because it allows you to get the lost item replaced at the current market price, while ACV valuation will pay you for your property considering its depreciated value, based on its age and use.

Here is a hypothetical example of how ACV can differ from RCV for a renters insurance policy. 4 years ago you purchased a TVs for $3,000 and insured it with a renters insurance policy with a $500 deductible.

If the TV is destroyed or stolen and you file an ACV claim, the depreciation value and the deductible are deducted and you get paid whatever is left. In this scenario - $500.

With an RCV policy you get paid the amount of money it will take to buy a similar replacement TV at the current market values. For example, if inflation drove the prices of such TVs up to $3,200, your renters insurer will pay out the current price, minus the deductible. Here the insured would get $2,700.

Make sure you read through the declaration page of the renters' insurance policy to have an idea of what your renters policy covers before you sign up for one. Also, you can contact a Texas-licensed property insurance agent to discuss the coverages included in your renters policy. The FAQs below address the pressing questions on what coverage you may or may not have under your renters' insurance in Texas.

Does Renters Insurance Cover Damage to Property?

Yes, renters insurance covers property damages under personal property and liability coverage. However, coverage does not extend to the building. Damages to the building are covered by landlord’s insurance. Renters insurance covers liability damages to other people’s properties. But for your property coverage, such damage must result from covered perils, and the insurance company will reimburse you up to the purchased policy’s limit. For instance, you can file a claim for renters insurance property damage resulting from any of the following:

• Burst pipes
• Water leaks
• Fire outbreaks
• Vandalism
• Smoke
• Windstorm
• Riots, and many others.

Does Renters Insurance Cover Carpet Damage?

Typically, most insurance companies in Texas will not cover carpet damage unless you own the carpet and list it as part of your possessions. Renters insurance does not protect rental structures. Your coverage is limited to your personal belongings and does not include items already existing in the rented building. Most carpets and flooring come with the buildings and may be covered under the property owner’s landlord insurance if the cause of the damage is a named peril in the contract. You may need to contact your landlord if your carpet is damaged by a covered peril like fire, flood, or normal wear and tear (except if it is your personal possessions). If the renter’s personal rug gets damaged or stolen, then the tenant’s renters insurance will cover it.

Does Renters Insurance Cover Broken Windows?

No, Texas renters insurance does not cover broken windows or damage to any other part of the building. Generally, such damages are covered by the landlord's insurance if they are not caused by you. Section 92.052 of the Texas Property Code requires landlords to fix certain damages or faults within the rented property, especially if it endangers the lives of the occupants. However, a tenant's request for repairs is only applicable if such damages result from the landlord’s negligence. As a tenant, you must follow procedures outlined by Section 92.056 of the Texas Property code when requesting repairs from your landlord.

If a tenant is responsible for the damages to the window, they will have to pay for repairs or replacements out-of-pocket.

Renters insurance may cover some of the liabilities or expenses resulting from broken windows. For instance, your Texas renters insurance policy will protect you if:

• Such broken windows cause injuries to a third party. You can file a renters insurance claim against your liability coverage, and your renters' insurance will pay the medical bills for treatments.
• You break someone’s windows, and they file a lawsuit against you. Your renters insurance company will pay your attorney fees and also the punitive damages awarded against you
• Your landlord sues you for property damage (this is rare because the landlord may easily remove such costs from your security deposit), and your renters policy will protect you under property damage coverage. Most landlords may require proof of renters insurance before they rent or lease their properties to prospective tenants, and if you do not have one, you will pay for broken windows and other damages you cause to the building out-of-pocket.

Does Renters Insurance Cover Appliances?

Yes, renters insurance in Texas covers appliances if they belong to you. Your appliances are part of your possessions, and if stolen or damaged by a covered peril, your renters insurance will pay for repairs or replacement. However, note that such coverage only applies to the policyholder and those included in the contract. Your renters insurance policy will not cover appliances belonging to individuals not listed in the contract document. For instance, it will not cover the washer and dryer provided by the landlord, or appliances that belong to your roommates unless you add them to your policy.

Does Renters Insurance Cover Broken Appliances?

Yes, renters insurance covers broken appliances if the damage was caused by a covered peril. If your actions caused the appliance to break - the cost of repair is not covered by typical renters insurance insurance, unless it has an options equipment breakdown coverage.

Your renters insurance will reimburse you for a covered loss due to food spoilage that results from a broken-down refrigerator, if the damage was caused by a covered peril. However, your renters insurance policy will not pay for broken appliances if the damages result from a flood, an earthquake, maintenance breakdown, underground water damage, or wear and tear due to age.

The cost of repairs to your broken appliances in Texas ranges between $100 and $250. These costs may depend on the type of appliance, age, and nature of repairs (minor or major repairs).

For extra protection against hazards not covered by renters insurance (such as mechanical breakdowns and some electrical damages), you may need to consider adding equipment breakdown coverage to your renters insurance.

Does Renters Insurance Cover Jewelry?

Yes, in Texas, renters insurance covers the jewelry. Your jewelry is your personal property, and renters insurance covers your personal property in the event of theft. Over $800 million worth of jewelry was stolen in the United States in 2020, but only $25 million worth was recovered. Renters' insurance coverage for jewelry is limited to theft. You will not be reimbursed for damage to your jewelry.

The amount you will get as reimbursement will usually not exceed $1,500. However, you can expand this limit by buying a separate rider for additional coverage (this will raise your premium). Also, you are typically only entitled to 10% of your jewelry’s actual cash value if it is stolen outside of your apartment.

Note: If you have jewelry that you would like to insure beyond the coverage provided by renters insurance, speak with your insurance agent about Jewelry insurance, which covers not just the theft but also the everyday events, such as: loss, damage, mysterious disappearance, and loose stones.

Does Renters Insurance Cover Lost Wedding Rings?

Yes, renters insurance covers lost wedding rings, up to a certain point. Most insurers peg their sub-limit coverage at $1,500. If the replacement value (current market value) of your wedding ring exceeds your renters' insurance sub-limit, you will not be paid beyond your policy’s limit. In Texas, additional coverage is necessary if you want to receive payouts above your sub-limit. Before you buy extra coverage for your wedding ring, you should first find out the replacement cost of such a ring. Also, find out how much deductible you will pay before you file a claim for a stolen or damaged wedding ring. A higher deductible reduces the amount you pay as a premium, but this may become a problem when you need to file a renters insurance claim. For instance, if your deductible is the same as or higher than the replacement value of your ring, it may not be beneficial to file a claim.

Does Renters Insurance Cover Firearms?

Yes, Texas renters insurance covers firearms both as a property and as a liability. Personal property coverage of your renters insurance provides protection against the loss of personal properties, such as a firearm. Renters insurance covers the damage to or theft of your guns up to a certain limit if you own them. In 2020, 1,361 firearms were lost/stolen in Austin alone. Renters' insurance typically limits coverage for firearms to $2,500 if stolen or damaged.

In 2020, firearms injuries led to 4,164 deaths in Texas. Your renters insurance policy personal liability coverage will pay for medical bills and legal expenses if your firearms injure others, as long as you can prove that you did not inflict such injuries deliberately.

Note: If you have weapons in a home with children - keep them locked. Make sure to store your guns in accordance with the law.

Does Renters Insurance Cover Trampolines?

While trampolines are considered personal property, some insurance companies may not cover them under renters' insurance. Due to the high possibility of injuries to trampoline users, insurers that cover trampolines under renters' insurance may charge higher than average rates for coverage. Also, there may be stringent conditions for coverage. For instance, some insurance companies in Texas may only protect against theft or damages to the trampoline and will not pay for personal injury liability.

Before you buy renters insurance, ask the insurance company for the renters' insurance declaration page sample and go through the list of what is covered and the exclusions. Also, as a tenant who wants to install a trampoline, you may need to seek your landlord’s approval because they may also be exposed to liability lawsuits resulting from injuries on the property.

Speak with a licensed Texas P&C agent about insuring a trampoline.

Does Renters Insurance Cover Lost Items?

Yes, your renters insurance covers lost items, if the loss results from covered perils. For instance, renters insurance will pay if a covered property is lost due to theft, fire outbreak, or windstorm. Items whose values exceed the standard renters' insurance sub-limit may require scheduled personal property coverage as an add-on coverage. It is important to note that renters insurance only covers items lost due to covered perils. For instance, if you accidentally misplaced an item, the loss will not be covered by renters insurance because misplacement is not a covered peril. For more information on how insurance will provide renters coverage if your item is lost, contact your insurance agent.

Does Renters Insurance Cover Stolen Packages?

Yes, renters insurance covers packages regardless if they are stolen within the property, in transit, or in storage. If the package belongs to you - it is covered under property coverage. If you file a renters insurance claim for lost property, make sure that the value of the stolen package is more than your policy deductible.

While it is possible to get $0 deductible renters insurance, most Texas renters typically choose a deductible of $500 or $1,000. If your packages are getting stolen, you may want to lower your deductible, so you can file the claim while paying less out of pocket.

Over 210 million packages were lost to theft in the United States in 2021. Among the top 10 cities most affected by package theft in the U.S. - 2 are in Texas: San Antonio and Austin, ranked 5th and 6th respectively.

TOXIC MATERIALS COVERAGE

Texas renters' insurance policy may protect you from toxicity if the source is a peril covered by the policy. Toxic materials can release harmful substances that can cause injuries or death. There are some cases where you have to deal with toxic materials within your living space, and you need to know if your Texas renters insurance will reimburse the money you will spend to protect yourself. According to the National Capital Poison Control, 3,316,671 poison-related emergency calls were made in the U.S. in 2020 alone.

Does Renters Insurance Cover Mold?

Is mold covered by renters insurance: Yes, renters insurance in Texas covers mold. It will protect you from mold infestation if the cause is a covered peril. Renters insurance mold coverage insures against mold on your furniture and clothes under personal property damages and will pay for repairs or replacement. It covers molds that result from toilet overflow, dishwasher failure, and refrigerator water supply line rapture.

However, if the mold results from a flood, it will not be covered unless you have flood insurance coverage in addition to your renters policy. In the U.S., mold triggers about 21% of all asthma cases and leads to over $3.5 billion in annual medical bills

The average cost of mold testing and inspection in Texas is $369, and it costs between $45 and $65 per hour, or between $10 and $20 per square foot for remediation and removal. Your renters insurance can pay these bills. For molds caused by heavy rains, sewer overflow, and storm surges, you will need separate flood insurance (molds from sewer overflow will be covered by your landlord’s homeowner insurance). Your renters' insurance will not cover mold that results from negligence or water that comes into the property from outside sources.

ELECTRICAL COVERAGE

Although electricity is turning out to be indispensable in our modern lifestyles, if you do not handle electricity properly, it poses a safety risk. As a tenant, it is vital to know the protection you have under your renters' insurance policy. Below are answers to commonly asked questions about renters’ insurance policy and damages caused by electrical faults:

Does Renters Insurance Cover Power Outages?

Spoiled food is the most commonly claimed loss from a power outage and it is typically covered by a Texas renters insurance policy. Since you must pay a deductible during the claim, make sure that the food replacement claim makes financial sense.

Typically, renters policy does not cover power outages, but if the outage results from a covered event like fire, lightning, and storms, you will have protection under your renters policy. Coverage for power outages depends on the cause of the power outage.

Since Texas runs on its own electrical grid, it can be prone to power outages if the demand for electricity goes higher than what the grid is capable of delivering. For example, in 2021, Winter Storm Uri caused a power outage to about 69% of Texan homes that on average lasted between 42-52 hours.

When purchasing renters insurance, ask your insurance company for a sample of a renters insurance declaration page to see what coverage you have. Also, you can contact your insurance agent for additional information on Texas renters insurance coverages.

Does Renters Insurance Cover Power Surges?

No, Texas renters insurance typically does not cover power surges which result from the electric company's fluctuation of electricity. However, you may have protection if your appliance is damaged by a power surge that results from lightning. You can protect yourself from losses caused by power surges by buying additional rider coverage, getting quality surge protectors, and unplugging your electrical appliances during storms and lightning.

Speak with a licensed Texas insurance agent to find out more details.

WATER COVERAGE

Texas renters insurance offers limited coverage of water damage in certain circumstances - based on the cause:

Does Renters Insurance Cover Water Damage?

This depends on the source of the water that caused the damage. Typically, your renters insurance water damage coverage will cover accidental damages from common scenarios such as burst pipes, water discharge, or overflows. However, renters insurance will not usually cover water damages from a flood, backed-up sewage, or deliberate acts. You can obtain add-on coverage options to include flood or sewage damage coverage on your policy.

Does Renters Insurance Cover Flood Damage?

No, renters insurance does not cover flood damage. Your renters insurance will not protect you from damages and losses caused by a flood. If you are a resident of Texas, you are at risk of flooding, and standard renters or your landlord’s insurance will not protect you. For protection against flood, you need both renters insurance and flood insurance as overlapping coverages. Data from the Federal Emergency Management Agency (FEMA) estimates that between 1978 and 2008, Texas residents filed more than 361,000 flood insurance claims totaling about $15.1 billion.

Between 2020 and 2050 the number of Texas residents at risk of flood will increase from 29.7 million to 42.3 million. Below are some answers to most common flood-related questions that are asked about renters policy in Texas:

• Can renters get flood insurance? - Yes, renters can purchase separate flood insurance policies
• Is there flood insurance for renters? - There is no flood insurance exclusively for renters. However, you can bundle your renters insurance with flood insurance
• Do I have renters insurance flood coverage? - No, a regular renters insurance policy does not include flood protection. You need a separate policy for that.
• Does renters insurance cover flooding? - No, renters insurance does not cover flooding, you need to purchase flood insurance to protect you from flood damages

In Texas, though it is not mandatory, home renters can combine renters insurance with flood insurance for greater protection due to the high possibility of floods in the state. Flood insurance can be purchased through the National Flood Insurance Program (NFIP) or through private insurers. Speak with a trusted insurance agent for more details.

FIRE COVERAGE

On average, 28 thousand building fires are reported in Texas every year and your renters insurance has your covered against losses of personal belongings and injuries that result from fire incidents:

Does Renters Insurance Cover Fire Damage?

Yes, renters insurance covers fire damages. Your renters' insurance will pay for the repairs and replacement of your personal properties destroyed in a fire outbreak. Also, it will pay or reimburse you if you have to relocate temporarily outside your home if the fire outbreaks make your home uninhabitable. Fire is one of the covered perils of renters insurance, and regardless of who is at fault for the fire outbreak, you will have protection. However, your renters' insurance policy will not cover a deliberate fire outbreak or fire caused by perils like an earthquake, sewer overflow, and flood. In such natural disasters, you may be eligible for additional assistance through the Federal Emergency Management Agency (FEMA). If you unintentionally cause a fire that destroys other people’s properties, your renters' insurance will pay for such damages under your liability renters coverage (up to your purchased limits).

Note that you have to pay renters insurance deductibles for losses and damages sustained in a fire outbreak before your insurer pays out your claim. For example, if your renters insurance policy comes with a $1,000 deductible for a $3,000 claim, you will receive a $1,000 payout from your insurer. Insurers may offer discounts if your landlord installs fire safety equipment like smoke detectors, water sprinklers, and fire extinguishers in your home to reduce the chances of starting a fire.

Does Renters Insurance Cover Smoke Damage?

Yes, renters insurance covers smoke damages to your own property only. Renters insurance will not cover smoke damages to your car or the rental unit and damages resulting from deliberate acts. Before you purchase renters insurance, contact a licensed independent renters insurance agent with access to different insurers to provide you with multiple renters insurance quotes from which you can choose the best renters insurance in Texas.

THEFT COVERAGE

Approximately 50 thousand residential burglaries happen in Texas every year. According to the FBI reports crime statistics, 49,059 Texas residences were burglarized in 2021, with an average stolen value of $3,188.

Does Renters Insurance Cover Theft?

Yes. Renters insurance covers theft of your personal property. The property coverage of your renters' insurance policy will cover the costs of replacing your stolen items. This coverage will be up to the purchased limits of your policy and subject to renters insurance deductible. You can check the limit of coverage for stolen items under your renters insurance by reading through the declaration page of your renters insurance contracts or by contacting your insurance agent and discussing your renters insurance theft coverage limits.

Does Renters Insurance Cover Bike Theft?

Yes, renters insurance covers bike theft and will pay for such loss. Your bicycle is on your list as personal property and is covered under renters insurance personal property coverage.

In addition to theft, Texas renters insurance pays for repairs for damages and loss of your bike accessories (tools and gears that keep your bike roadworthy and those that protect you from injuries). You must pay the deductible when you make a claim. Your renters policy will not cover your losses if your bike is stolen or damaged through deliberate action or negligence. If the value of your bike exceeds $1,000, you may need to adjust your category limit through a rider or get motorcycle insurance for full protection.

Does Renters Insurance Cover Theft Outside The Home?

Yes, renters insurance covers theft and robbery outside the home. In Texas, regardless of where the crime happens, renters insurance property coverage will protect your personal belongings up to the limit of your policy. You just need to pay the deductible.

Does Renters Insurance Cover Theft from Car?

Yes, the personal property coverage of your renters insurance can help you replace items stolen from your car while it is parked at home or away from home. However, if the car is stolen along with your items, renters insurance will not pay for the car because it is not a covered loss. Car theft would be covered under your auto insurance policy - comprehensive coverage.

For example, if you leave your phone and laptop in your car and the car gets stolen, renters insurance will cover your devices up to the limits of the policy, while the car is claimed through auto insurance.

Renters insurance companies may limit the amount they pay for high-value items (scheduled items) like jewelry and expensive electronic gadgets. For instance, the table below outlines common limits for some scheduled items in Texas.

Common Scheduled Items Coverage Limits for Renters Insurance in Texas

In addition to the limited payouts, you will need to also pay deductibles. If the value of your items exceeds your policy’s scheduled payments, you can purchase an extra endorsement for higher protection. Discuss your needs with a licensed TX insurance professional.

ANIMALS & INSECTS COVERAGE

Pets like dogs may be considered man’s best friend, but having them at home comes with responsibilities and may also come at a cost. The American Veterinary Medical Association estimates that about 85 million dogs live in American homes resulting in about 4.5 million dog bites yearly, with an average claim over $49,000. Termites cause over $5 billion worth of damage to homes in the U.S, not including damages caused by rodents and other types of insects. It is important to know whether your renters' insurance protects you against damages that result from animal and insect attacks.

Does Renters Insurance Cover Animal Damage?

No, renters insurance does not cover animal damage. Your renters insurance will not protect you if your property is damaged by your pet or wild animal. However, your renters insurance will pay for injuries and damages your pet causes to other people and their properties; this type of payment is covered by your Texas renters insurance liability coverage.

If the animal damages the structure of your rental home - speak with your landlord, so they can file the animal damage claim using their own landlord's insurance.

Does Renters Insurance Cover Dog Bites?

Yes, renters insurance will cover a dog bite claim. Typical renters insurance covers dog bites under liability coverage - when your dog bites someone who does not reside in your property and causes them damage. However, certain aggressive breeds of dogs might be exempted from coverage, usually because these breeds have a higher propensity to carry out actions that will result in claims.

Make sure to review the exclusions of your policy if your dog’s breed is commonly considered as aggressive. Speak with a knowledgeable Texas insurance agent who can find you a renters insurance company that will insure you and your four-legged friend.

Does Renters Insurance Cover Bed Bugs?

No, renters insurance does not cover bed bugs. Bed bug infestation is preventable by keeping basic hygiene practices, and as a tenant, it is your responsibility to protect yourself from vermin. However, know that Texas Property Code Section 92.056 holds landlords accountable when they knowingly rent out pest-infested properties to tenants. Texas landlords are responsible for pest control when they turn the property over to you.

Below are some additional commonly asked questions pertaining to renters insurance and pest invasions:

• Does renters insurance cover pest control? - No, renters insurance does not cover pest control. In Texas, most insurance companies consider pest invasion as a result from poor maintenance either on the part of the property owner or home renter. If the pests were within the premises before you rented the property, your landlord is responsible for their control. However, if you cause the invasion, you will pay out-of-pocket for their control.
• Does renters insurance cover roach infestation? - No, renters insurance does not cover roach infestation. However, your landlord will have to pay for their control if his/her actions/inactions led to the infestation.
• Is there bed bug insurance for renters? - No, there is no bed bug insurance for renters. In Texas, most insurance companies consider bed bug control as part of home maintenance and do not include renters insurance bed bug coverage in their insurance plans. Your renters insurance covers losses that may result from unexpected disasters, and bed bug infestation is not an unexpected event.

OTHER COVERAGES - Q&A

Below are the additional commonly asked questions about renters insurance coverage in Texas:

Does Renters Insurance Cover Roommates?

No, your renters' insurance will not cover your roommates unless you are all listed on the same policy. To add roommates to your policy - you need to get renters insurance with additional insured coverage.

Renters insurance with additional insured (roommates renters insurance) will provide protection for all the parties included in the contract. Roommates renters insurance comes with advantages and disadvantages. For example, some leasing contracts may request tenants to add landlords to renters insurance as additional insured. Adding your landlord to your renters policy could save you money on the cost of coverage and protects the landlord against liability lawsuits that involve them. If someone sustains an injury or a covered loss within the premises, they may sue you and the landlord, and additional insured renters insurance will cover the cost of an attorney for all liable parties and pay the punitive damages.

On the flip side, if your renters insurance company allows you to add additional insured to your insurance contract, you will have to share the benefits and coverage limits of such a policy. For example, if the property in the rental unit is insured for a total limit of $50,000, all your and your roommates’ stuff is included in this amount. Losses of all of the insured are using the same pool of money. Once it runs out, nobody else can get paid. If you plan to use the same policy for multiple people, make sure to properly assess the coverage amounts and speak with a licensed insurance agent for help.

In addition, if your roommate decides to file claims under your policy, it may have ramifications for you as the policyholder because such claims are registered by the LexisNexis Comprehensive Loss Underwriting Exchange (CLUE). Your insurer will access your policy’s claims recorder from CLUE when determining how much you should pay for coverage, and a high claim record will lead to a higher premium.

Does Renters Insurance Cover Loss of Use?

Yes, renters insurance covers loss of use, and your insurance company will pay for living and feeding expenses incurred due to a covered peril. If a covered catastrophe prevents or limits your use of the rented property, your renters policy will provide additional temporary living expenses coverage to cover the extra costs you will incur. Typically, your insurance policy will state a limit as to how much can be expended under this coverage.

Loss of use renters insurance coverage in Texas is typically either a percentage of the property coverage limit (10%-40%) or a flat maximum amount per event ($3,000-$7,000). If more coverage is desired, speak with your insurance agent about buying additional living expense coverage.

Does Renters Insurance Cover Hotel Stay?

Yes, renters insurance will cover hotel stay under loss-of-use coverage if a covered event renders your home temporarily uninhabitable. For example, if an apartment building has a fire and due to the smoke damage you cannot stay in your home, your renters insurance company will reimburse you for money spent on hotel bills and other normal living expenses associated with temporary housing - up to the policy limits. Texas renters insurance provides additional living expenses coverage if your home is made uninhabitable by any of the following:

• Theft
• Fire outbreak
• Lightning
• Freezing of plumbing
• Vandalism
• Riots
• Pipe leakage or overflow
• Windstorms and hail
• Smoke
• Damages to water heating appliances
• Explosions, and other covered perils

Your loss of use coverage has a time period. Generally, it may be for:

• A given number of months
• The time taken to make your home habitable again
• The duration it will take for you to get new permanent accommodation

Also, you do not get to determine the amount your insurance company will pay you for loss of use. Some insurance companies may pay a fixed amount ranging from $3,000 to $7,000 while some may use a percentage of your property damage coverage to determine how much to pay. For example, if your loss of use is 25% of your property damage coverage of $70,000, your renters insurance hotel stay coverage will not exceed $17,500 (0.25 x $70,000). Anything above that amount will come out of your pocket.

For more information on how renters insurance covers hotel stay, speak with a TX-licensed P&C insurance agent.

Does Renters Insurance Cover Moving?

Renters insurance covers moving your personal property if damages occur as a result of a peril that is included in the policy (such as fire, smoke, wind and hail, etc.). If your property is damaged by the movers, then renters insurance will not help.

If you are using a moving company to move to the new residence, you may want to consider buying moving insurance as part of the contract. Moving insurance will help you get reimbursed if your stuff does not arrive at its destination intact.

Does Renters Insurance Cover Storage Units?

Yes, renters insurance covers storage units. Items covered under your renters' insurance policy will be covered even while in your storage unit. However, limitations will typically apply. Most renters insurance policies in Texas will only cover personal property outside of your home to the value of 10% of the total property coverage on the policy. You can, however, decide to extend the coverage on your policy or add endorsements and purchase renters insurance for storage units to afford you additional protection beyond the limit of your primary renters insurance policy.

Does Renters Insurance Cover Hurricane Damage?

Hurricane insurance for renters: Renters insurance covers losses that result from a hurricane as long as the primary cause of damage is not flood or you have a concurrent causation clause in your policy. Typically, if the damage is caused by a storm surge entering the apartment door or a window, as the hurricane approaches the coast - renters insurance may not cover the damage, because the primary cause is flood. Only separately purchased flood insurance will pay for this.

But if the hurricane winds, lightning, and fire are the causes of primary damage to your property in a rental unit, then you are covered with your basic renters insurance. If the flood comes in as the additional cause of damage, your regular Texas rental insurance will react in two possible ways, depending on the type of a Causation clause listed in the policy:

• The Concurrent Causation clause allows for damages from multiple concurrent causes to be covered - so the original cause is covered, plus the flood (which is normally not covered by this policy) is also getting covered,

• The Anti-Concurrent Causation clause in your rental insurance contract means that the secondary (flood) damage will not be covered - and only the primary may be paid. Anti-Concurrent Causation can possibly negate even your primary cause coverage.

  Make sure to discuss all policy clauses with a licensed TX residential insurance agent.

Renters insurance hurricane coverage only applies to the policyholder’s properties and not the building structure. Damages to the rental property itself are covered by landlord’s insurance. Texas ranks second in hurricane-prone states in the U.S. behind Florida and accounts for 21% of the hurricanes making landfall in the U.S. yearly. Between 1980 and 2021, hurricanes and other disasters caused over $200 billion worth of property damage in Texas. Texas has had a fair share of hurricanes/cyclones that led to extensive property damages over the years as outlined by the table below.

For additional information about hurricane insurance for renters, speak with a TX-licensed P&C insurance agent.

Does Renters Insurance Cover Tornado Damage?

Yes, renters insurance covers damages that result from tornadoes. Tornadoes cause primary wind damage and that is one of the basic coverages for all real estate property insurance. Your Texas renters insurance will reimburse you for property loss after a tornado hits your rental residence up to the actual cash value of the item. However, how much you will get as reimbursement depends on how much coverage you have and the category limit of the lost or damaged item. Make sure to correctly calculate the values of your properties to determine how much coverage you need for protection in the event of damage or loss. Speak with a Texas-licensed property insurance agent for more details.

Does Renters Insurance Cover Earthquakes?

No, renters insurance does not protect you from earthquakes. Renters insurance does not cover earth movement (earthquakes and sinkholes) and floods. To protect yourself against damages that result from an earthquake, you need to purchase standalone earthquake insurance. Although earthquakes can occur at any time and location, statistics show that the probability of earthquake occurrence in Texas is low when compared to the eastern and western parts of the United States.

Note: There is no standard price for earthquake insurance in Texas. The amount you pay for coverage depends on the insurance company and your location. You can typically protect yourself against the eventuality of an earthquake for as little as $4-$6 per month.

Does Renters Insurance Cover Lightning Strikes?

Yes, renters insurance covers lightning strikes. Lightning strikes can cause an electrical surge that may damage your electronic appliances or set fire to your stuff. Texas renters insurance will cover the cost of replacing or repairing your damaged property. The amount you will get for property damage by lightning depends on your coverage limit and the type of property valuation you chose: whether you have an actual cash value (depreciated value) or replacement cost value policy.

For an actual-cash-value (ACV) renters policy, your insurer will pay up to the value of the damaged or lost item at its depreciated (used value), while a replacement-cost-value (RCV) will pay the amount needed to get a new replacement item. Note that the amount your insurer will pay may be less than your actual or replacement values because deductible is deducted from each covered claim.

Does Renters Insurance Cover Lightning Damage to Electronics?

Yes, renters’ insurance covers lightning damage to electronics. Lightning is a covered peril under renters’ insurance, and you have protection against damages it will cause to your properties. If lightning causes a power surge that destroys your television, gaming console, video player, or mobile phone, your renters’ insurance will pay for a replacement, subject to your chosen coverage limit and deductible. However, most renters insurance companies do not cover damage due to electrical surges, unless they are caused by a covered peril (like lightning). The costs of some electronics may exceed your coverage limit; so you should evaluate the value of your properties to know how much renters insurance coverage you will need for adequate protection.

What is NOT Covered by Renters Insurance in Texas?

There are a few perils that are typically not covered by renters insurance. They include flood damage, car damage and theft, damage to the property of roommates and other inhabitants not covered by the policy, damage caused by earthquakes, and damage to the rental property.

What Does Renters Insurance Typically Exclude?

Exclusions in a renters insurance policy are typically determined by what coverage type you opt for and the policy provider's agreed coverage extent. Renters insurance in Texas typically excludes the following:

• Natural disasters like floods or earthquakes - most renters insurance policies exclude these occurrences from the policy protection. If you live in an area susceptible to these kinds of incidents, you will need to get flood insurance or earthquake insurance.
• Pests - pests are typically not covered under renters insurance. If you notice pests, immediately report them to your landlord. The longer you let it go untreated, the harder it will be to get rid of.
• Car damage or theft - cars are not included under the coverage of a renters insurance policy. If your property is stolen from inside the vehicle, it is covered by renters insurance, but damage or theft of a vehicle (even if stored in a garage of a rented home) is covered only by auto insurance.
• Property of roommates - none of your roommates are included in your renters' policy unless it is a joint policy and they are listed as the additional insured. If your roommate requires protection, they will need to purchase individual renters insurance coverages. If you decide to add your roommate to the coverage, make sure to reassess and increase the coverage limits to match the combined value of the insured property.
• The building structure - insuring the structure of the rental unit itself is the landlord's responsibility.

To discuss policy coverages and to get affordable renters insurance in Texas, speak with a TX-licensed P&C insurance agent.

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Renters Insurance QUOTE Comparison Worksheet (PDF)