Get most out of renters coverage

Officials have urged all residents in the Houston area to consider flood insurance.

But roughly 60% of Houstonians are renters. What should they be thinking about when it comes to insurance?

Because insurance for renters covers what's in the home -- such as your furniture, computer and clothing -- rather than the structure itself, it's relatively inexpensive.

Just like homeowners insurance, however, a general renters insurance policy usually does not cover flood damage, so a separate flood insurance policy is also required if you want to protect your possessions from rising waters.

Because policies can vary quite a bit, here's what insurance agents recommend paying attention to in your policy choices and how to get the most out of your coverage:

Extra living expenses

When Hurricane Beryl barreled through the Houston region last year, a tree crashed through the home rented by insurance agent Chelsey Hernandez's sister. "Luckily," Hernandez said, "she did have renters insurance."

The insurance policy included additional living expenses, which covered a hotel for Hernandez's sister, as well as a storage unit for her furniture.

Hernandez, of Gibraltar Insurance Services, said the amount a policy will cover for staying at another apartment or hotel because your home is uninhabitable is usually capped, so ask your agent to walk you through what your policy would cover in that scenario. Most renters insurance policies include such expenses, but National Flood Insurance Program policies generally do not.

If you pair a renters insurance policy with an NFIP policy, make sure the renters policy would cover hotel expenses if your home floods. Alternatively, there are private flood insurance companies that cover additional living expenses.

Replacement costs

Let's say your 5-year-old couch falls victim to a disaster (or theft, which is also generally covered by renters insurance).

Should insurance cover what it costs to purchase a new couch? Or has the couch already served, say, half of its useful life, making it worth considerably less than it was when you bought it?

The first is defined as replacement cost, while the latter is defined as actual cash value. It's important to note what your policy covers.

Flood, mold repair

Renters insurance covers much of what could happen to your personal property, said Richard Johnson, director of communications and public affairs with the Insurance Council of Texas. For example: fires, burst pipes and theft.

However, renters insurance typically doesn't cover flood damage. So, for full coverage, you either need both renters insurance and flood insurance or a specialized policy from a private company covering floods.

And an NFIP policy takes 30 days to go into effect, Johnson said -- so if you're going to get a policy, don't wait until you hear about a storm forming.

Hernandez also cautioned that although renters insurance may cover water damage from a burst pipe and a torn-off roof, it likely will not cover mold. If that is a concern, she recommended discussing it with your agent.

Deductibles, limits

Before insurance starts paying out a claim, you'll first have to pay your deductible.

Understanding how much must come out of pocket before insurance will start covering your hotel or furniture can help you weigh the pros and cons of getting a policy or filing a claim.

If you have high-value items -- such as firearms, jewelry, antiques or artwork -- discuss them with your insurance agent. There may be limits to what is covered, or they may require separate insurance.

Recordkeeping

If you decide to get a policy, document what you own. A good way to start is by taking videos of the items in every room and uploading them to the cloud or emailing them to yourself, Hernandez said.

The best proof of ownership and value, of course, is a receipt. For major items you know you'll want to replace after a disaster, consider saving the receipts in your email or on the cloud.