How Much Renters Insurance Should You Buy?

How much renters insurance you should buy depends on the amount of coverage you need. The easiest way to figure out your home insurance needs is to take an inventory of your possessions and look for a renters insurance policy that would cover the cost to replace them with a premium rate you can afford. Start shopping for affordable renters insurance rates now with our free ZIP code search below.

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Natasha McLachlan is a writer who currently lives in Southern California. She is an alumna of California College of the Arts, where she obtained her B.A. in Writing and Literature. Her current work revolves around insurance guides and informational articles. She truly enjoys helping others learn more about everyday, practical matters through her work.

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...

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Reviewed by Laura Walker
Former Licensed Agent

UPDATED: Nov 7, 2020

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There is not a specific amount of renters insurance that is right for every person or family. To determine how much coverage you need, it is important to inventory your possessions and consider the possible liabilities you face in association with the home. Armed with a home inventory, you can then shop for renters insurance online to find a price that fits within your budget from a company you can put your trust in.

What Does Renters Insurance Cover?

A standard renters insurance policy is specifically designed to cover your personal property and home liability needs. If your home burns down or is robbed, your personal property will be replaced according to the terms of the policy. And if a friend is injured tripping on throw rug, your policy would pay for the injury and the replacement of your property damaged breaking her fall. Without renters insurance, you would be responsible for the medical bills and replacing a coffee table out of your own pocket.

Creating a Home Inventory

Your renters insurance needs to be sufficient to cover the value of your personal property. To calculate how much renters insurance you need, it will help to create a home inventory. The easiest way to create a home inventory is to use a video camera and meticulously go through every room, recording everything it contains. If you suffer a loss from disaster or theft, the home inventory will serve as your proof of ownership and of the condition of the items insured.

Liability Insurance Concerns

Another aspect of renters insurance is liability coverage for injuries or damages sustained by someone other than your immediate family. Bodily injury liability will pay for injuries someone sustains as a result of you, your dependents, or your property. For instance, if your landlord tripped over a throw rug and sprained her ankle, your liability coverage would pay for her medical care. Property damage is similar, but related only to property rather than injuries. If you own pets, you should consider some specifics regarding renters insurance for pet owners.

Adjusting the Deductibles on Your Renters Insurance

Once you have determined how much insurance you need, you can still reduce the costs by looking for discounts and using a low-cost strategy. One way to lower costs is to raise your deductible. With a high enough deductible, your premiums can be extremely low, but take care not to set the deductible higher than you can realistically pay out of pocket. Before your insurance will pay a claim, you will be required to meet the deductibles of then policy. There are also other ways get cheap renters insurance and as always, comparing renters insurance quotes on a regular basis will help ensure you’re paying the lowest possible prices.

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