How Much Renters Insurance Do I Need?

You’re about to move into your first place. Congratulations! This is a very exciting time.

But if you don’t protect your belongings with renters insurance, that excitement could quickly turn to agony.

Most people don’t think they need a renters insurance policy because they don’t own the property they’ll be staying at. Even worse, many mistakenly think that the landlord’s insurance policy will cover them if something should occur.

That’s why it’s so important that you understand exactly what renters insurance is, what it covers, and how much you truly need in case of a covered claim.

Do I Really Need Renters Insurance?

Like we mentioned before, many renters think that if something should happen to the place they’re renting, the landlord’s insurance policy will cover their belongings.

For instance, let’s say a fire were to occur in the apartment building or house you’re renting, and some of your belongings were affected.

It’s the landlord’s building, so shouldn’t everything inside the building be covered by their landlord insurance policy?

No. In fact, most landlord insurance policies only cover the building and any damages due to negligence on their part. Not your personal belongings.

So if you want to make sure you can replace the items you have – even that worn out hand-me-down couch Grandma gave you – then you need renters insurance.

What Does Renters Insurance Cover?

Renters insurance covers what you own. This includes everything from furniture and TVs to socks and underwear.

It’s important to know that renters insurance isn’t just coverage for when a disaster happens like a fire. Renters insurance also offers coverage for your personal items if a theft or vandalism occurs.

Without a renters insurance policy, you would be left to cover the full cost of replacing your items.

How Much Renters Insurance Do I Need?

The great thing about renters insurance is that it’s very inexpensive! In fact, the average renters insurance policy costs just $15 a month.

And while you might not think you have a lot financially wrapped up in your personal belongings, you have to consider the cost to replace them – not the cost you got them for.

For example, let’s take that hand-me-down couch Grandma gave you. For you, it was free. But if a fire turned that couch into crispy burnt toast tomorrow, you’d have to buy a new one. And even at used prices, you’ll still have to come up with the cash to replace it.

If you had a renters insurance policy, you’d be able to replace your damaged items at just the cost of your deductible, rather than paying for each item individually.

How to Determine How Much Renters Insurance You Need

First, you need to take an inventory of all your belongings. Yes, even your socks and underwear. Because if you ever have to replace them, those little things can add up quickly.

Make sure to keep a list of your items and their estimated replacement value in a safe place.

By adding everything up on your list, you’ll have a good idea of how much coverage you need.

You’ll Need to Pick a Deductible You’re Comfortable With

A deductible is the amount you pay out of your own pocket when a covered loss has occurred.

For instance, if you choose a deductible of $500, and your damages totaled $10,000, then your insurance policy will pay you $9,500 to replace the damaged items.

You have multiple options for a deductible. It’s important you speak with your insurance agent to choose one that works best for you.

Want to see how much a renters insurance policy would cost to cover your personal belongings? Give Amigo Insurance a call today! Our expert, licensed staff can assist you with finding the coverage you need at a price you can afford.

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