Determining how much Renters Insurance you need

You have made the decision to purchase renter’s insurance to protect your personal property in the event of a fire, theft, or vandalism. Now you’ll need to decide on the amount of coverage to purchase. There are two basic methods that are used to determine how much renter’s insurance coverage you need.

To be certain that you purchase a policy that will adequately replace your property, you will need to start by writing down an inventory list of all your possessions. Make sure to include any and all items of property, such as your sofa, computer, TV, or even your clothing. The simplest way to do that is to begin in one room and continue throughout your home making sure to list everything.

Once you have completed the list, you will need to then go back an add information such as when it was acquired and the actual price you paid for each item. If the actual price is unknown, just put the amount it would cost to replace the item today. Remember, while compiling this information to attach any receipts that you may have. It’s also a good idea to take a picture of each item, as well. Once you are sure you have included everything, add the totals together. This will give you the total worth of your property, therefore showing you how much coverage you will need to purchase.

As a safety precaution, store the completed list, along with any receipts and pictures in a safety deposit box or in the home of a close friend or relative. By keeping your inventory documents in a separate place than with the actual inventory, they will remain safe. If and when the time comes for you to file a claim, your inventory documents may prove extremely helpful in the event of any type of property loss or damage that you incur. The inventory method of determining property value is the most accurate, although it can be time consuming and at times, a bit tedious.

The second way of determining how much renter’s insurance you need is by allowing an agent to help you estimate the value of your personal possessions. By using a system based on the size or the number of rooms in your dwelling, an agent can quote you an approximate value. You would then purchase a policy that would cover the estimated value.

When using the estimation method to determine property value, you are not guaranteed the coverage will be enough to replace everything that you lost. It’s not an exact method. It is the quicker of the two methods and requires the least amount of time and work.

Some types of properties that may require additional coverage are:

* Money, Stocks and Bonds, or Coins

* Jewelry or Furs

* Watercraft

* Trailers

* Silverware or Gold-ware

* Business Property

Ask your agent if you will need to purchase a rider or extra endorsement.