When obtaining renter?s insurance it is important to put serious consideration into how much insurance you really need to buy. Some things you may want to consider when making this decision include whether or not you can afford to re-purchase everything in your home in the event that disaster strikes. You may also want to ask yourself what you would do if a neighbor slipped and fell on the wet floor in your kitchen and decided to take legal action against you.
How much personal property coverage you need to buy naturally is based on how much your personal property is worth. An excellent way to assess how much money to invest in your policy is to take an inventory of what you own. Beside each item you should account for when you attained it and how much you paid for it. Once your inventory is complete you should tally the amount of everything you own to come up with a general idea of how much your possessions are worth. You should always keep this inventory in a safe place away from home such as a safety deposit box so that if your home is lost to a fire your property inventory will be safe. It may be wise to take photographs of high-end or sentimental property as well.
The following chart is representative of typical replacement costs for a two-bedroom apartment. These amounts are not exact and will vary.
Personal Property Replacement Value
Furniture $8,907
TV, VCR, Stereo, Tapes and CDs $1,777
Home Computer $1,647
Microwave $151
Other Appliances $ 240
Clothing $3,700
Paintings, Prints, Photos $792
Glassware, China, and Silverware $612
Sports Equipment $600
Cameras and Photographer?s Equipment $795
Books $704
Jewelry $1,023
All other property $4,000
Total Personal Property $24,948
Something else you may want to consider is that although the personal property loss settlement provisions determine how much will be paid out on your property in the case of a loss there is a dollar limit for particular types of material goods. The following example shows the typical amounts involved:
Money, Bank Notes, Coins (including collections) $200
Property used or intended to be used in business
On premises $1,000
Off premises $250
Watercraft and equipment $1,000
Securities, Checks, Traveler?s Checks $1,000
Trailers (not used with watercraft) $1,000
Stamps, trading cards, comic books (including $2,500
Collections)
Theft loss of:
Jewelry and Furs $1,000
Firearms $2,500
Silverware and Goldware $2,500
Rugs, tapestry, wall hangings
Per item $5,000
Aggregate $10,000
Home computers $5,000
Antiques, fine arts, paintings, statues and comparable items that are irreplaceable and belongings not useful for its proposed function are restricted in coverage to market value. However, if you have an abundance of items that fall into this category do not fret, special coverage may be available. Ask your agent about an endorsement or personal articles policy.
