When you have to pay for the amount of coverage you receive, you need to know exactly how much renters insurance is necessary. Too small of a policy won't cover all of your losses if there's a problem. However, too large of a policy is a waste of your money, which is a big deal if you're living in a studio and eating ramen a few nights a week. Even if you aren't too stressed about your budget, there's still no need to overpay for coverage you're unlikely to use.
Anyone renting a house or apartment should have renters insurance to protect their personal property such as jewelry, electronics, housewares and more. However, renters should think carefully about how much coverage is needed before signing up for a policy.
You can't figure out the right-sized policy without actually knowing what you own. For smaller, more common items - say, the clothes in your closet - you may have to estimate how much they all cost. Just count how many shirts, pants, suits, and other clothing items you own. For more expensive items like your TV and laptop, it's important to know the make and model, when you bought them and how much they cost.
It's best to write this all down when you perform an inventory because you can take it to your prospective insurance agent. He or she can help you understand how much total coverage you need and whether each piece of your property will be fully covered under the average renters insurance plan or if you'll need additional coverage for certain big-ticket items.
Consider your personal liability
You may not know this, but renters insurance can cover medical expenses and legal fees as well as the cost of replacing personal property. If you're sued because someone gets hurt on your property, your renters insurance policy may be able to cover the cost of your attorney and the other party's medical bills. How much it pays depends on your liability coverage.
The amount of liability coverage you take on and pay for is entirely up to you, but considering how expensive lawsuits can be, many renters feel safer paying for more than the minimum amount. It just depends on your budget and peace of mind.
What should you expect to pay?
Overall, renters insurance is considered affordable. However, what is affordable to each person can vary drastically. On average, renters insurance costs between $15 to $30 each month, according to the National Association of Insurance Commissioners.
The price you pay will depend on the type and amount of coverage you choose, as well your location and the amount of your deductible. However, most renters can find coverage for as little as $1 a day. To compare renters insurance quotes, visit CoverHound today.