Most landlords in Houston require you to have renters insurance. Most tenants just buy the cheapest policy they can find to satisfy the lease agreement. This is a mistake that can cost you thousands.
Landlord-Required vs. What You Need
Typically, a landlord only requires you to carry enough liability coverage to protect their property. The minimum is often around $100,000 in liability. This covers things like a fire you accidentally start or a major water leak from your apartment that damages the building or other units. It does nothing to protect your own property.
A proper renters policy has two main parts: personal liability and personal property coverage. Liability protects you from lawsuits if someone is injured in your home, or if you cause damage to the building. Personal property coverage is what pays to replace your own belongings—your furniture, clothes, electronics, and everything else—after a covered event like a fire, theft, or water damage.
How Much Personal Property Coverage Is Enough?
The biggest mistake renters make is underestimating the value of their belongings. Think about what it would cost to replace everything you own, all at once. Not what it's worth on Facebook Marketplace, but what it would cost to buy new today.
- Furniture: Sofas, beds, tables, chairs
- Electronics: TVs, computers, sound systems
- Kitchen: Appliances, pots, pans, dishes
- Clothing and shoes
- Decor, books, and personal items
It adds up fast. A quick inventory will show that even a modest one-bedroom apartment can easily hold $30,000 to $50,000 worth of contents. A cheap policy might only give you $10,000 in coverage, leaving you to pay the rest out of pocket after a total loss.
Replacement Cost vs. Actual Cash Value
This is a critical detail. An Actual Cash Value (ACV) policy pays you what your property was worth right before it was destroyed. It accounts for depreciation. So that five-year-old laptop you paid $1,500 for might only be worth $200 today.
A Replacement Cost Value (RCV) policy pays what it costs to replace your old item with a new, similar one. It costs a little more per month, but it's the only way to make yourself whole after a major claim. Always ask for RCV.
Other Coverages to Consider
Beyond the basics, a good renters policy should include a few other things:
- Loss of Use: If your apartment is unlivable after a fire or major leak, this pays for your hotel bills and other temporary living expenses.
- Medical Payments to Others: A small amount of no-fault coverage (usually $1,000 to $5,000) if a guest is injured in your home, regardless of liability.
- Off-Premises Coverage: Protects your belongings even when they're not in your apartment, like a laptop stolen from your car.
Getting the right renters insurance isn't just about checking a box for your landlord. It's about protecting your financial well-being. If you're not sure what your policy covers, send your declarations page over and I'll take a look.
Want this reviewed against your actual policy?
Upload your declarations page to PolicyPal™ — we'll flag the gaps in plain English.