How Much Renters Insurance Do I Need

As a renter, it is important to understand that your landlord is only responsible for insuring against damages to the structure of your home or apartment. In the case of an event resulting in damage or theft of your personal property, you will need to carry renters insurance to cover the expenses of repairing or replacing your property.

Renters insurance should be a part of every renter’s budget. While many landlords may not require renters to carry renters insurance, going without could be a risky and financially devastating decision. Without renters insurance, the cost of replacing or repairing your belongings fall on you entirely and this money will come out of your pocket.

Additionally, if someone is injured in your apartment or by one of your pets, you can be held liable for these injuries. When compared to the amount you could spend in the case of an unfortunate event, renters insurance is well worth it’s small monthly cost.

Determining How Much Renters Insurance You Need

When the time comes to select a renters insurance policy, it doesn’t have to be difficult determining how much coverage you need. Selecting the right coverage is as simple as asking yourself three very important questions.

#1) What are my belongings worth?

The value of most people’s belongings are typically more than they can afford to replace out of pocket. Because of this, it is important to take into consideration the worth of your belongings when selecting a renters insurance policy.

Simply estimating the cost of repairing your belongings is not enough, the majority of insurance experts recommend you conduct a thorough home inventory to get the most accurate number for the worth of your belongings.

An inventory can be completed as follows:

  • use your smartphone or digital camera to take shots of each room in your home or apartment as well as up-close shots of your belongings.
  • use these photos as well as any information you have about your belongings to create a detailed list of your belongings and their estimated worth.
  • keep your home inventory in a safe place outside of your home, such as a safety deposit box at your bank.

#2) Does this policy include personal liability coverage?

In that case that someone is injured inside of your home or your pet bites and injures someone, you may be held responsible. It is important to carry personal liability coverage as part of your renters insurance policy in the case that you face a lawsuit or are held responsible if one of these things occur.

Before selecting a policy, make sure you speak with an agent about the amount of personal liability coverage you need. Various factors play a role in determining how much coverage you need, including your net worth, the value of your belongings, and other factors associated with your living situation such as a roommate or a pet.

#3) Do I need additional coverage?

Certain circumstance may require you to obtain additional insurance coverage. For instance, most renters insurance policies to not cover damage as the result of a flood or earthquake. f you live in an area at higher risk for a flood or earthquake, you may choose to purchase an additional insurance policies.

Additionally, many renters insurance policies place a dollar limit on insuring certain belongings. Because of this, you may need to purchase an individual insurance policy to cover any belongings which exceed this dollar amount. Further, collectibles, jewelry, and art are generally excluded from renters insurance.

Talk With an Agent

While selecting a renters insurance policy is not terribly complicated, there are multiple factors which play into the amount of coverage you need. Taking in account the worth or your belongings, your need for personal liability coverage, and any need you may have for additional coverage can be a time consuming processing and can be financially devastating if not done properly.

An independent insurance agent, like the at, can walk you through the process of selecting the appropriate renters insurance policy. Additionally, your agent can help you to select the most affordable insurance by running a premium quote comparison on multiple companies.

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NYC Renters, Co-Op and Condo Insurance