How Much Renters Insurance Do I Need?

Securing renters insurance is a smart decision for any renter because it provides you with the best defense you can get on things in life you cannot control. Situations such as losing belongings due to them being stolen or damages caused by a careless neighbor are just a few examples. If you ever come across these situations, you do not have to panic since you have renters insurance to protect you. Since this type of insurance is essential, how much of it do you actually need? How Much Renters Insurance Coverage Do I Need? There is no single answer to the question, “how much renter’s insurance do I need?” Different individuals have different needs and priorities. What one person may feel is sufficient coverage for them may not be adequate for another. The primary decision to make is deciding on the limits to the personal property and liability coverage you should get. The two features cover the biggest financial exposures for tenants and are also the main drivers for the overall cost. Seeking guidance from an insurance agency can help you determine how much renters insurance you need. How Much Renters Liability Insurance Do I Need? The majority of renters insurance policies offer liability insurance coverage that ranges from $100,000 to $500,000. A good rule of thumb is to sum up your net worth. You should include bank accounts, the value of your car, and any retirement savings. By choosing enough liability insurance that can cover the amount of these things, you can reduce the risk of a lawsuit taking out all your assets. How to Calculate Renters Insurance Here are the basic steps when calculating renters insurance. Perform an Inventory One of the first things you should do is find the total worth of everything you own. Go from one room to the next and note down all of the things there. With a basic list, you can make changes to it and even add photos, receipts, and serial numbers for more details. You can create an inventory by:

Compiling a spreadsheet of your belongings
Estimating the expenses of replacing each item
Paying attention to valuable things
Summarizing the estimated total cost

What Does Renters Insurance Cover? Typically, renters insurance policies are made up of three unique components that have separate types of protection offered.

Type of Coverage	What It Covers
Personal Property Coverage	You get reimbursed for personal items that are damaged, destroyed, or stolen by a covered peril
Personal Liability Coverage	You are financially protected if you cause damage to the rental or when someone gets hurt within your property and requires medical attention
Loss-of-Use Coverage	You are reimbursed for the cost of finding a new rental or staying at a hotel if your home becomes unsafe to live in because of a covered peril

How to Get Renters Insurance A renters insurance policy is easy and affordable to buy. Many insurance agencies let you request a quote and do everything through their Contact Us page. Before buying, you should finish your home inventory so you have a better idea of what you need. You can then shop around, compare quotes, and study the coverage options provided before deciding. When talking to an insurance company representative, you should ask the following questions:

What perils does your insurance cover?
Do you take into account all my personal property?
Do I get an actual cash value (ACV) or replacement cost value (RCV) policy?

Conclusion For most individuals, getting renters insurance is a good fit for their needs. It provides them with protection from accidents and peace of mind knowing that they are protected. If you believe that getting renters insurance is the right choice for you, contact us now here: https://www.insurancecompanyhilliardohiollc.com/contact-us/ to find out how you can get a policy. Whatever coverage you decide on, having a way to keep your personal belongings protected is always important when you are renting a property.