|
Renters Insurance
How much renter insurance do you need?
The amount of renter’s insurance that you require is based on your personal belongings. To get an idea of how much all of it is worth, make an inventory of all that you have, so that you know the items for which you need coverage.
In order to make an inventory of your personal belongings, you need to break them into different categories such as electronic goods, clothing, jewelry, painting and so on. Place items into these categories and then add up the value of items for each category. Finally add up the value for all categories that you have made to find out how much of coverage you require for loss to personal belongings. Look into the current value of your belongings and how much you had initially paid for it. Based on this figure, consider if you want to take actual cash value policy or a replacement cost policy on your personal belongings.
Now, you also require liability coverage, because a situation can arise where you can face a lawsuit from people who were accidentally injured while on your property, but for which you are responsible. It is difficult to put an estimate on how much you would need on this. An estimate would require you to look into the general condition in your home that can cause an accident to others, such as your pet, your personal belonging excluding you automobile and your family members. Generally this coverage will compensate for medical expenses for the injured person.
Renter’s insurance will not provide coverage for acts of God such as floods and earthquakes. If you require coverage for such events you should opt for an endorsement. An endorsement will enhance the incidents covered by the policy. In case of expensive items such as valuable jewelry, antiques, furs and so on, you cannot get coverage under your general renter’s insurance policy limits and therefore in such situations you are required to take up a floater, which will provide the required coverage on them.
|
