Texas-Bound Renters: Do You Really Need to Take Out Renter’s Insurance?
Photo provided by Henry Becerra/Unspash
There are plenty of high points to renting your own property. From the small things, like having full control over the organization of your kitchen cabinets, to the big, life-altering things, like being able to invite guests over whenever you want or watch cartoons on a Saturday morning even though you’ve aged well beyond their target audience, life away from home — and doing it on your own — is the stuff of dreams for many people.
What’s more, there are plenty of high points to renting your own property in Texas. In a practical sense, the Lone Star State is one of the most tax-friendly states you’ll find, and the world of business — whether you’re a start-up owner, or an intern — is thriving. In a more personal sense, the state is known for its friendly neighborhood atmosphere, it’s incredible offerings for those who enjoy the best culinary delights, sport and culture — not to mention its strong sense of diversity.
So, combine the two, and what do you get? The perfect next-chapter to your own story, and a great, fresh start in a state that is constantly clearing the way for its inhabitants as they grow.
If you are moving into a rental property in Texas, you may be wondering whether or not taking out a renter’s insurance policy is really worth your while — not to mention the added cost. If you are still on the fence, read this guide to whether or not you need to pursue this extra.
It’s Not a Legal Requirement, But…
In Texas, there is no law stating that renters need to be investing into an insurance policy. If you’re looking to save money wherever possible, you may think that’s all you need to read, and that moving forward without insurance is the ideal decision for you.
There is, however, a big caveat. The vast majority of legitimate landlords will request that you are able to provide proof of your existing renter’s insurance policy before you sign your name on the dotted line. Why? Because they want to feel sure that, should something go wrong while you are living in the property, you (or, more specifically, your insurer) will be able to cover it.
What Could Feasibly Go Wrong?
So, even though you are now aware that the majority of landlords will want proof of your policy, you may still think that you could survive without one. The chances of something ruinous happening are relatively slim, right?
While it may well be the case that you progress through your tenancy without any major setbacks, it remains the case that the sheer scope of potential worst-case-scenarios posed to any renter are not worth the risk. Consider how you would cope in the wake of a burst pipe, loss of use or if a visitor sustained a significant injury while they were on your property. If you’re planning your vacation, your mind may not go straight to the idea of an opportunistic thief breaking in, but it’s a very real possibility.
In 2018, Texas saw losses amounting to more than $25 billion from fires alone. How would you cope if one of those fires impacted your home and possessions, and displaced you as repairs took place?
The answer is, you would likely struggle, and it would prove to be a far more financially-unsettling experience than making your monthly insurance payments in preparation.
Final Thoughts
Securing an appropriate renter’s insurance policy to suit your needs is just another item on the to do list for anyone who is taking on a new rental property. For many, overriding opinion seems to be that these policies exist in order to serve the best interests of the landlord. After all, they are owner of the property, and any significant damages caused by say, fire or flood are their responsibility. But the fact of the matter is that these policies do a lot to protect tenants now, and in the future.
There are any number of things that can go wrong while you are living in a rental property, and, while some are certainly much more likely than others, taking the wait-and-see approach has ended badly for many of renters before you.
Working with an experienced insurer will make certain that you are protected should the worst happen, and that a small investment now saves you from a massive financial outlay in the future.