Finding the right coverage balance for renters insurance means choosing accurate, appropriate limits for your personal property and liability coverage. Here are some tips to help you in this process:
Inventory Your Possessions
Personal property coverage is probably the main reason you purchase a renters policy. The coverage will reimburse you for damage, loss, or theft of your possessions up to a specific dollar amount, so you’ll want to make sure you get that amount right.
Performing a home inventory is an excellent way to determine how much property coverage you need. This inventory lists your possessions, details about their age, purchase price or current value, and other identifying information. Document the items with receipts when possible. When you’ve completed the list, total the amounts to determine your coverage value. (You’ll also want to put a copy of the list in a safe place if you need it to support a claim.)
Assess Your Liability
Your renter’s policy’s liability coverage protects you if someone injures themselves in your home. It also protects you if you or a family member causes damage to others’ property. Some policies will pay for the defense and court costs and settlement costs. The typical renter’s insurance policy offers $100,000 in liability coverage. For renters, this amount is often sufficient.
Add Coverage If Necessary
Remember that your policy will exclude specific perils (such as earthquake and flood losses) and limit coverage on some items (such as computers, firearms, and silverware). If you have unique insurance needs, give our office a call to find out more.