Personal Property Question

What is the name of your state? Texas; I have recently purchased furniture and financed through the store with a no interest for XX months contract. In the contract, a line item for personal property insurance was required. We have personal property insurance already and was told that my insurance company would have to send a form stating that the furniture store was a less payee and would be added to my insurance in the event something happened. The charge was $875.00 for ~$2,000.00 worth of furniture. I was told this was required. Since then, I have been told they cannot require this? Which is correct?