You should have enough renters insurance coverage to replace lost or damaged items with new ones. On average, renters have approximately $20,000 worth of belongings, but it is important to take inventory of everything you own to calculate exactly how much coverage you need. Extra insurance coverage is recommended for valuables such as art and jewelry.
Landlords are responsible for insuring rented properties against damages caused by fire and other disasters. Your personal property as an individual renter is not generally covered by the property owner’s insurance. While you aren’t legally obligated to buy renters insurance, it is strongly encouraged you do to protect yourself from the unexpected.
Take Inventory and Document Your Possessions
It is not enough to simply buy a renters insurance policy. If you need to file an insurance claim, you must be able to prove what you owned to make sure you will get enough money to replace your possessions. Document everything of value you own with a camera, walking through every room taking detailed photos of individual items. Go through closets and any storage space where you keep your valuables.
Once you have visual evidence of your belongings, make an itemized list and update your inventory periodically, especially when you make big purchases. Many insurance companies offer online tools to help with the inventory process.
Research Prices of Replacement Items
It is not enough to simply take pictures and make a list of your possessions. Do research to determine exactly how much it would cost to replace them. Shop around, keep a running grand total, and make sure to add a cushion for inflation.
For expensive items, it may not matter if you know the replacement value. Most renters insurance policies have limits that require special riders to replace items such as jewelry or fine art.