Finding the right balance for renters insurance means choosing accurate, appropriate limits for your personal property and liability coverage. For the best results, this process may require a bit of effort. But if you’re strapped for time, there are some shortcuts you can take, too.

Inventory your possessions
Personal property coverage is probably the main reason you purchase a renters policy. The coverage will reimburse you for covered damage, loss, or theft of your possessions up to a specific dollar amount, so you’ll want to ensure 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 and 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 an extra copy of the list in a safe place in case 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 defense and court costs and settlement costs.

The typical renter’s insurance policy offers $100,000 in liability coverage. Whether this limit is sufficient depends on numerous factors, and we recommend working with the agent to determine the proper coverage.

Supplement 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, talk to your agent about extending limits or adding separate policies.