Texas Personal Property Insurance

Most Expensive Cities to Insure Homes in Texas

City Average Annual Insurance Rate
Wharton $3223
Angleton $3217
Rockport $3200
Orange $3178
Corpus Christi $3133
Richmond $3067
Liberty $3058
Pampa $3015
Stinnett $3011
Port Lavaca $2967
Dumas $2965
Kountze $2944
Decatur $2887
Houston $2885
Victoria $2871

Cheapest Cities to Insure Homes in Texas

City Average Annual Insurance Rate
El Paso $1443
San Marcos $1565
Austin $1598
New Braunfels $1609
Seguin $1613
Bryan $1658
Fredericksburg $1668
Georgetown $1691
Floresville $1704
Lockhart $1707
Bastrop $1712
Laredo $1738
Gatesville $1740
Boerne $1741
Kerrville $1763

Home insurance should not be just about protecting the home; it should also be about protecting the personal property inside. If you live in Texas, personal property insurance is a product offered to help you in case of losses.

How Personal Property Insurance Works

It has been often said that "knowledge is power", but only if you use it. When we're talking about personal property insurance, or contents insurance, the more you know, the better off you will be in the long run. Protecting personal items inside the home are just as much a part of the insurance equation as the home is.

Here are two factors you need to know that insurance companies use in determining your coverage:

  • Valuation: This clause on your policy outlines how your personal property will be valued in the event of loss. The good news is you get to choose how they do this, and you can choose between one of two methods. The first is cash value. If you choose this method, and down the road you have a valuable item stolen, the insurer will take the cost of replacing the stolen item with a brand new one, and subtract depreciation, the value of an item after a specified time. The second method is replacement cost, which is simply the cost of buying a brand new replacement item. In the event of theft, you will be reimbursed for that amount.

  • Sub-limits: Many companies have "default" amounts that they include in most of their policies. The reason for this is that they consider some categories of personal property carry greater risk than other ones. So they attach a sub-limit to each of those to minimize the payment on any claims.

One example of this is jewelry. A typical sub-limit on this is $1,500. You might already see the problem with this. One piece of jewelry could be worth that or more!

Do Renters Need Personal Property Insurance?

Texas renters insurance is also available for people who rent apartments, homes – even mobile homes. Contrary to common perceptions, renters insurance can be a good investment.

Your landlord is require by law to carry a level of homeowners insurance that covers the structure only. If there were ever a fire or robbery in the building, and you lost personal property, their policy will not cover it. If you want to protect your belongings in case of loss, you are responsible for purchasing that coverage.

If you live in a building that has an obvious lack of attention to maintenance or care, you would be wise to get renters insurance. Also, if the area has had some known thefts, don't take any chances – get theft insurance.

Also, in the case of a fire, if the rental is damage beyond livability, your own renters insurance can cover the unexpected expense of renting temporarily elsewhere during renovations, as well as storage.

You probably already have auto insurance, so talk to your insurer about adding renters insurance to your policy. Most companies will discount your auto insurance when adding renters insurance, so it's a win-win.

It may cost you a bit every month, but if you ever experience property loss in your rental, you'll be glad you got it.

Actual vs. Replacement Value - Which is Best?

Everyone's needs are different, insurance included. But no one is immune to loss or personal property. And how your insurance company calculates the value of your property when considering reimbursement after a loss is important. It can mean the difference between full replacement and coming up short on the funds to replace lost items.

Let's take actual cash value first. The plus side to this type of coverage is that the monthly premiums are lower, so you can save money on the front end. However, they're limited in default coverage amounts, especially for items that increase in value. If you lost several pieces of fine jewelry due to theft, these policies generally cap the coverage amount at $1,500. You probably have one piece worth more than that.

If it's for items that lose value over time, like furniture, actual cash value coverage will take the brand new cost of an item minus the depreciation that item sustained. It's obvious that replacement will be very difficult – unless you get a super deal, you won't be buying brand new.

Replacement value coverage, on the other hand, takes the cost of a brand new item in today's prices. Replacement value coverage will give you the best homeowners insurance possible.

How Much Personal Property Insurance Do I Need?

The answer to this question depends much on you. How strongly are you attached to them? Nobody likes to lose money or possessions in a disaster. So to the extent possible, why not protect them?

So the first thing you should do is take inventory. What do you own of intrinsic value that you feel is worth replacing if it were lost somehow? Write everything down, and then take it to your insurance agent to discuss adjusting options on your policy to insure these items.

You may see a variety of monthly premium options. And even though you want to stay at a certain payment, don't be afraid to consider a plan that costs more. Sometimes it really is a case of "you get what you pay for".

The reason is that a lower premium has less adequate coverage too. If you want adequate coverage, be prepared to pay for it.

The key here is that you want value for the price you're paying. Otherwise, if the policy you're paying for doesn't cover you, it's a waste of money, even if it's cheaper.

So whatever home insurance you have, don't forget to insure your personal property. It will save you money in the long run if you ever encounter loss.

How To get The Best Personal Property Insurance Rate

Home owners insurance doesn't have to feel like learning brain surgery. Compare personal property insurance to make sure you have the best coverage possible.

You might start by checking with your agent to see how you can get a good rate. No doubt your car is insured, so ask him or her to see what kind of deal they can offer you to combine your homeowners, renters or personal property insurance to your auto policy.

Compare contents insurance policies, another name for personal property insurance, between carriers. Independent agents can help you here, as they have access to these carriers. You might be surprised that another carrier could offer adequate coverage more affordably!

It might seem like an act of disloyalty to switch carriers, but it happens all the time. Sometimes a company changes their policy terms, which can make your premium unreasonably expensive. Other times, their customer service goes downhill. But remember, it's your money.