How should i go about estimating the amount of coverage I need for renters insurance? ?
June 4th, 2010
i’m starting to get estimates on renters insurance but i’m not sure how to estimate the value of my property. Do i estimate using the depreciated cost for things like gaming consoles, camera’s, i-pods, tv.’s, etc.. what about things like DVD/game collections? What about things i have no reciepts for- does that even matter? clearly i’m in need of suggestions 
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you need to make an inventory of what you have. when you do renters insurance, you estimate how much it will cost to replace the items, so not depreciated. i don’t think receipts matter, you can look up how much an ipod is online. make a list, price everything, then add it up! don’t forget clothes and furniture, too
Great question!
When it comes to your stuff, there are two different types of coverage. Replacement Cost or RC, will give enough money to buy all new things. So if someone stole your 5 year old 40″ TV, they would give you enough money to buy a new 40″ TV. Actual Cash Value is the other type, it accounts for age and condition. So using the TV example again, you would get what you could have sold the TV for right before it was stolen. Obviously, RC is much much better so make sure your policy is RC.
With that in mind, you should take an inventory of everything and price for what it would cost to get new again. Total it up, add a little cushion and that’s what your personal property coverage should be. Receipts aren’t necessary, but photos are a great idea, especially for the more expensive items. It’s also great idea to have yourself in the photos as well (proof you own them and not your neighbor). Save those pictures online somewhere (email them to yourself) or save copies at someone else’s house.
nate is correct but don’t forget to place liability coverage on the policy as well. i suggest at least 300,000. its the cheapest part of the policy ( about $12.00 per yr) and can save you if something ever happens that you can be held liable for. it happens a LOT so make sure you have it.