How Much Renter’s Insurance is Enough?

If you’ve had a chance to read our blog before, you can see that we’ve covered what exactly renter’s insurance is and why it is a good idea to sign up [“Renters Insurance – Why do i need it and what is it for?”]– especially before disaster strikes. However, one question that we have yet to fully answer is: how much insurance do renter’s need and how is that determined. In this blog, we’ll take at steps to take to ensure that you’re full protected against life’s curveballs.

How Much Do I Need?

There’s a couple of questions you need to ask yourself before considering renter’s insurance:

First, you must determine how much your belongings are actually worth. This goes beyond just the price tag you’ve paid. Remember, a television that you purchased in 2010 for $1,000 is more than likely only going to be worth $200 in modern terms. Conversely, some items you have purchased may have accrued value. Also, remember that sentimental value is usually not calculated, despite how irreplaceable those items were. Would you be able to buy all of your household items if they were stolen or destroyed by a fire? This requires taking inventory of all of your possessions.

*Note: Even if your landlord has his property insured, your belongings aren’t necessarily insured against damages.

Taking Inventory of Your Possessions

Here’s a few steps you should take to determine how much your possessions are worth:

1) Create a list for every item you own. Be sure to include:

• when you acquired the item
• the purchase price
• the current value
• a picture of every item

Consider using a spreadsheet program like Microsoft Excel or Quickbooks for your inventory, as these make calculations instantaneous.

2) Total the amounts to give you a ballpark estimate of what your possessions are worth.

3) Secure this document in a safe place away from your home, whether you store it in a bank safe deposit box or on a virtual backup (ie. Dropbox, the cloud, etc.)

Once you have a definitive number, you can then start looking for an insurance company www.RiskBlock.com that offers you a reasonable rate for coverage that protects the value of your property.

Exceptions

Be aware that not every item is subject to the same types of coverage by every insurer. Each insurer imposes dollar limits on items, depending on their policies. A quick list would include:

• Currency (foreign and domestic money, bank notes, coins)
• Property from your business (on- and off-premises)
• Boats and watercraft (also including furnishings and equipment)
• Fine jewelry and expensive furs
• Firearms (some insurers apply a limit to theft only)
• Silverware and goldware (some insurers apply a limit to theft only)

And so forth. Consult a qualified insurance agent to see just what possessions are covered and for how much. You may be surprised with the results.

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As you can see, it is no easy task to tabulate these numbers. At RiskBlock, we understand your concerns to ensure that, should a disaster or theft occur, your family is covered. Click here to begin insuring your belongings today!