How Much Renters Insurance Do I Need?

By Compuquotes Team on April 28th, 2008

Renters Insurance

The premium for renters insurance is based for the most part on the total amount insured. Other factors include your claims history, location, the construction of the building you occupy, proximity to hydrants and fire halls, etc. In order to have your contents properly insured, there are a number of things you can do to arrive at the figure required.

Few people realize just how much it would cost to replace absolutely everything they own, in the event of a total loss. The first thing to do is to make a detailed list of everything in your household, and with some easy research, find out what it would cost to replace everything, at today's prices. Prices have risen dramatically over the years on most products, and because of this, most people tend to under estimate the replacement cost of common items. Things like silverware, clothing, household tools, furniture, electronics, bedding, ornaments and artwork, must be taken into consideration in order to arrive at the figure you need to insure.

Items like fine arts, furs, jewelry and family heirlooms need to be given special consideration. Different insurance companies will have varying limits on amounts they will pay for any one item in certain categories. Because of this and in order to properly insure those expensive or precious items, they may have to be scheduled or listed separately on your renters' insurance policy. This will require you to have professional appraisals complete with photographs before you will be able to properly insure the item. Check with your insurance company through your broker or agent as to what items may have a limited amount payable, in the event of a loss.

Another way to help in compiling your list is through a photographic record or even video of your belongings. With camera or video device in hand, take a stroll through your entire home, including drawers, closets and storage areas. This will help in not missing the little things that we have forgotten we even owned. Maintaining this type of record of your contents will also be of great benefit towards settling any claims that may arise.

Renters insurance provides protection for your contents against loss or damage due to an insured peril. In order to avoid frustration and perhaps undue financial hardship, it is important to insure for the total amount you would have to pay in the event of a total loss. That china cabinet or piece of jewelry handed down to you from your grandmother may be irreplaceable, but you can at least rest easy knowing that you will be adequately compensated. Premiums vary from insurance company to insurance company, as do the limits applied to certain items. Because of this, it is as important to compare the limits and other benefits of the different policies offered, as it is to compare price.

Once you have decided to protect your contents by acquiring renters insurance, take the time to do a complete inventory of your belongings. This will not only ensure you are getting what you are paying for, but will help your chosen insurance agent or broker in obtaining the best possible coverage.

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