Renters Insurance Agent Odessa, TXIf you rent a house, apartment or mobile home you should renters insurance coverage. Why?

Personal effects are not protected by the landlord’s insurance policy. Your landlord’s insurance covers damage to the building but does not protect your personal possessions.

If your personal effects are lost, damaged or stolen, renters insurance provides coverage. Renters insurance also protects you against liability claims if a visitor to your rented home or apartment is injured.

How you are compensated depends on the type of loss and the amount of coverage you have in place. You can purchase “actual cash value” (depreciated) coverage for your personal property, or you can buy replacement cost coverage for your personal possessions.

Although you aren’t required to carry renters insurance by law, your landlord can require renters insurance in your rental lease agreement. Having renters insurance protects you so that regardless of what happens on the premises, your renters insurance will cover you.

If you are required to relocate due to repairs from fire, smoke or water damage, for example, your renters insurance can cover temporary accommodations.

Renters insurance is very affordable. Depending on where you live and the coverage amount you choose to carry on the policy, the cost is around $100-$250 per year. The national average for renters insurance is $15 to $30 per month.

Texas renters insurance is very affordable. The average cost is around $15 a month for $10,000 of personal property coverage and $100,000 of liability. You can get more coverage if you need it which might total $20 a month.  Consider what it would cost if you had a major loss and did not have renters insurance. The loss of electronics, jewelry or valuable collectibles could be in the thousands, making the cost of renters insurance minimal by comparison.

Considering the affordability of renters insurance, why do so many people run the risk of not having it?

Insurance Agent Odessa, TXYou may have wondered about the phrase Independent Insurance Agent. What exactly does that mean? And why should I use them? In this week’s blog we will try to clarify that for you.

Insurance agents who work for one company are referred to as ‘captive agents. They will only sell insurance policies from one insurance company. The only way you can buy insurance policies from those companies are through their exclusive agents.

Independent agents, on the other hand, can sell insurance products from a variety of insurance companies.

There are pros and cons to both. For captive agents, knowing the ins and outs of a certain company’s policies has an advantage. Ideally, they know their company’s policies thoroughly. Independent agents however, are able to shop around, negotiate and get you the best price on comparable policies from a number of different insurance companies.

Independent insurance agencies are licensed through 99.5 percent of all insurance companies. An MGA (managing general agent) is used for hard to place commercial risks. Unlike traditional agents, an MGA is vested with underwriting authority from an insurer. Many independent agents are not big enough to get direct contracts with insurance companies, so they broker through an MGA.

Agents working as brokers operate on a lower commission rate because the MGA keeps part of the commission and charges a monthly fee to write policies through them. Brokers have no binding authority through the policies they write through an MGA and are required to tell the insured they are not the “agent of record’.

Working with an independent insurance agent serves you in many ways. They not only find you competitive pricing, they make sure you’re fully and correctly covered. Working with you face-to-face, an independent agent is more like your personal adviser, taking the time to listen to you and understand your individual needs.

Independent agents are often your neighbors who share an interest in the community and the challenges of living in the area. An independent insurance agent also offers the convenience of one-stop shopping by providing you with auto, home, renter, business coverage and whatever specialty insurance you may need along the way.