If you bought a tractor trailer, you wouldn’t add it to your car insurance policy. It’s a specialized vehicle and needs special coverages and claims handling.

So why do more than half of the RVers surveyed by Progressive Insurance add their RV to their car insurance policy?

“We don’t know why, but we know why they shouldn’t,” says Cathy Pelfrey, RV Insurance Texas product manager with Progressive.

For example, what if …

… your RV breaks down on a trip?

While a lot of car insurance policies offer roadside assistance, many may not include coverage for your RV. Even if your policy covers some roadside expenses, it may not cover them all. For example, it may pay for towing only up to the amount it costs to tow a car. RV tows can cost three times more. That means out-of-pocket expenses you’re responsible for paying.

“Through Progressive Insurance, we can offer specialized roadside assistance for RV’s, says Jesus Olivares, agent at Texas Prime Insurance, an independent insurance agency out of Austin, TX. “a simply blow out on an RV can be very costly.  One of my customer had a blow out that cost $700 and it required special handling.  Progressive Insurance covered this!”

… your RV is involved in a crash?

Auto insurers typically have someone who normally handles car insurance claims inspect your RV. Specialty RV insurers train claims rep to look for damage and write estimates specific to RVs. They also work with repair facilities in Texas that know how to repair an RV and guarantee the work.

“You really need an expert to handle an RV claim,” says Jesus.  “RV parts and repair is a completely different animal compared to autos.  Also, in an RV policy, you have the option to select replacement cost.  An auto insurance policy typically only offers actual cash value, this can mean a lot of money for an RV owner.”

… the stuff in your RV is stolen?

Renting a residence is a wise financial decision for many people.  A hefty mortgage is avoided, and the renter is free to pick up and move when the lease expires.  Whatever the reason for renting a home, apartment, or townhouse, renters should insure their belongings with renters insurance in Texas while living in the residence.  Most people assume that the landlord's insurance on the dwelling will also cover the renter's property in the event of a claim.  However, any insurance that the landlord has on the building will only cover the building structure itself, and renters need to insure their personal belongings with a separate policy.  There are many different types of policies, and renters should consider the following points before signing a contract with an insurance company.

1.  Decide between actual cash value and replacement cost.

In the event of a claim, insurance companies will either pay actual cash value or replacement cost.  Actual cash value is the amount of money that the item was worth at the time it was damaged.  This means that the renter may only receive $50 for an older television that was originally purchased for $300.  In contrast, replacement cost is the amount of money that it will cost to replace that item.  People who own a lot of electronics are advised to choose a policy that pays the replacement cost.

2.  Consider liability coverage.

Liability coverage is a good safety net to have if the residence is used to entertain or host.  This covers things like medical and legal costs in the event that someone gets hurt while visiting the home.  Discuss liability coverage with an insurance agent to determine an appropriate amount, because insurance companies will only pay for medical and legal fees up to the liability limit.

3.  Ask about additional living expenses.

In the event that the home is damaged and the renter needs to vacate the premises, a good renters insurance policy will pick up the cost of the additional housing.  Most policies include this coverage, however, it is in the renter's best interest to confirm this before signing a contract. 

4.  Asses the need for flood insurance.

Standard renters insurance covers events like fires and frozen pipes, but it does not extend coverage to damage from a flood.  The cost of flood insurance varies depending on where the rented residence is located.  It can either be fairly cheap, or it may cost just as much as the renters insurance premium.  This kind of coverage needs to be purchased separately from the basic policy, so renters should investigate flood maps to evaluate the need for flood insurance.

Regardless of the amount of property that a person or a family owns, it is a wise decision to purchase renters insurance in Austin when renting a home, apartment, or condominium.  Compared to other common bills like car insurance, renters insurance is a relatively low expense that can really help when disaster strikes.  Doing some simple research and gaining a complete understanding of what options are available for renters insurance will help renters choose the best policy for their new home.

Contact Texas Prime Insurance at 512-454-7799 or go to www.texasprimeinsurance.com for additional questions.