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Basics on Renters Insurance in Austin TX

Natural disasters do not make a distinction between owned homes and rented dwellings, and renters face the same risks as homeowners. Your condominium board or property owner may have coverage, but it only covers the actual building and not its contents. To protect yourself, you will need Renters Insurance Austin TX, which is explained below.

What is Covered by a Standard Policy

There are two types of home insurance. An HO-4 policy is meant for renters, while an HO-6 protects condo owners. Both of the above cover losses from:

Lightning
Fire
Hail or windstorm
Explosion
Riots
Plane or vehicle crashes
Smoke
Vandalism
Falling objects
Theft
Snow/ice/sleet
Volcano
Overflow from a plumbing, AC or heating system
Water heater explosion
Power surges

The only disasters not covered by these policies are earthquakes and floods. If you are in an earthquake- or flood-prone area, you’ll need a rider or a separate policy. In areas where hurricanes are a concern, you may need a rider for wind damage.

Replacement Cost vs. Actual Value

When signing up for Renters Insurance Austin TX, you should tell your agent about any valuables you own. Consider whether they are offering replacement or cash value coverage for your home’s contents. Cash value coverage pays for the value of your property at the time of its theft or damage. Replacement coverage pays for the replacement of everything you lost. In some places, insurers write cash value policies. In other areas, you will be offered replacement coverage by default. The latter costs more in monthly premiums but you will receive more if you make a claim.

What Happens if Your Home Becomes Unlivable

If your condo or apartment becomes unlivable due to a burst water pipe, fire or any other covered reason, your Renters Insurance Austin TX will pay your living expenses while your home is being repaired or rebuilt.

Liability Coverage

Most renter’s original policies include liability coverage. If someone in your home hurts themselves, you’re covered up to your policy limit. If you are sued because of the accident, your insurer will pay the judgment and court costs.

Keeping Premiums Low

Just like other home insurance policies, factors such as location, insurer, deductible and the need for additional coverage determine the premium you pay. There are some ways to cut your premium, however. Raising your deductible or installing a burglar alarm may result in a decrease, and some companies offer senior discounts.

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