There are two main factors to consider when deciding how much renters insurance to take on. One is how much possessions you own and how much risk you’re ready to assume.
Renters insurance is an excellent way to protect your possessions both within and outside of your apartment. It is also an affordable way to do it. But the amount of insurance you buy will depend largely on what you have and what you can pay every month.
Estimating your Renters Insurance Coverage.
Renters coverage is typically divided into a few different categories. Here are the most popular ones in the US along with their coverage amounts.
Personal property damage coverage ($25,000)
This plan settles the cost of fixing or changing your property if they are damaged or stolen.
Personal liability coverage ($300,000)
This plan settles legal expenses from damage and injury that happens in your apartment.
Medical coverage ($2,000)
Settles medical bills of any persons injured in your apartment.
Loss of use coverage ($10,000)
This covers your living expenses such as lodging, food and more should your apartment be unavailable due to damage.
You need to target $500 deductible that you pay your insurer before he can commence covering your costs.
You should also aim for a $500 deductible – the amount you have to pay before your insurer begins covering costs. You can also lower your renters insurance premiums by going for lesser coverage amounts but the different is not always significant.
How to calculate your renters insurance coverage needs.
Instead of just assuming on how much coverage you require, you must take into account the value of your possessions and set your limits accordingly. And then you must consider how much premium you are comfortable paying
What do I possess?
Your personal property damage must be enough to cover all of your property. You might want to take a little inventory of what you own and their value. This way you can also estimate what it would cost to fix or change anything in cases of theft or damage.
Do I need more coverage?
Some policies have an upper limit on luxury items like art, electronic equipment and jewelry. Before you take on any policy ensure that you are aware of its limits and purchase additional coverage for your more valuable items or perhaps get a separate policy such ad jewelry insurance for instance.
How much liability can you take on?
If someone got injured in your apartment, are you able to cover legal expenses if they took a legal action against you? Can you cover their medical bills? These costs accumulate easily and a renters insurance policy gives you protection and safe guards you’re hard earned savings.
Never underestimate how much coverage you actually need. With renters insurance you get access to one of the most pocket friendly insurance policies. Saving a few bucks today isn’t worth it when it could potentially cost your thousands more tomorrow when you need to make a claim.