How Much Renters Insurance Should I Buy?

UNO Insurance Agency in Phoenix, Arizona provides quotes for renters insurance from a variety of sources. Renters insurance is useful for protecting your belongings in the case of a fire, or other disaster. The building owners may have insurance, but that usually does not cover your personal items. When you are evaluating how much Renters Insurance coverage to buy, you will want to consider the value of your belongings, the type of payments you seek, and your thresholds for liability coverage.

Calculate Your Renters Insurance Needs

When shopping for renters insurance, it is a great idea to first inventory your home and determine the value of your belongings. You can also keep a file or scan receipts to track the value of your items, and provide proof of their worth. It is also helpful to include the serial numbers. This entire process is much easier if you record everything on an app, via photos, or store information online. Below are items to include in your home inventory:

  • Recent purchases that include their own warranties or accident coverage (i.e.: laptops, TVs, etc.);
  • Items stored off-site in storage, and how these items can be covered (i.e.: via renters insurance, or a plan purchased from the storage company); and,
  • General counts of items like clothing and jewelry, with special lists for highly valuable items.

After you estimate the value of your personal items, you can contact UNO Insurance Agency with your desired coverage amounts. You can also discuss what deductibles you would like to pay. You can even get coverage for belongings during travel or for storage. Note that flood coverage may not be included.

Types of Renters Coverage for Personal Items

There are two types of coverage for your personal items: actual cash value and replacement cost. Actual cash value will pay for replacement of the item, minus depreciation. Replacement cost is usually more expensive, but might help you purchase a new model of the item. Some of your belongings may depreciate quickly, so you can include that in your analysis of what coverage to buy.

Liability Coverage and Renters Insurance

Discuss needs for liability coverage when you call to purchase renters insurance. This coverage helps cover costs if someone sues you for bodily injury, or, if you damage the property where you live. Medical payment coverage can also help pay for hospital bills that are submitted by people who are hurt on the property—in this way, you may be able to avoid a lawsuit.

Additional Living Expenses

Additional Living Expenses (ALE) coverage may help pay for costs if you need to live elsewhere for a period because your home is destroyed. Only certain types of disasters covered by this type of insurance, so be sure to ask what is provided. In addition, read the limits of coverage, including the amount of time the ALEs will cover your relocation costs.

UNO Insurance in Phoenix, AZ is here to help you understand your renter insurance needs and save—we can even offer quotes for bundled auto and renters insurance policies that may earn you a discount!