When renting a home, you walk a fine line between personal ownership and leasing. The homeowner owns the property, and likely has a lot to do with its upkeep. However, you live in the rented space, and probably put a lot of work into keeping it nice. Not only that, the property’s owner likely won’t take any responsibility for your own possessions.
When you move your belongings into the rental, they still belong to you. You want to protect these items in case they sustain harm. Usually, you can do so with your renters insurance's possessions protection.
Determining What to Claim on Possessions Protection
Your renters insurance policy will likely come with possessions coverage. This protection can cover your personal items in case perils like fire, theft or weather hazards damage them.
Many insurers will allow you to declare an approximate value of your personal items. Your insurer will likely use this value as your policy’s limit. This is the maximum compensation you might receive from a claim.
So, to make sure you get appropriate limits, take a close look at the value of your possessions. The key here is to get enough money to replace your most valuable possessions. However, you might be better served to keep certain possessions off your estimates. If you can keep your limits as low as practically possible, you might be able to keep your renter insurance premiums lower. However, don't cheat yourself and neglect getting coverage that might make replacement easier.
Items to include in your value estimate might be:
- Food values—about 1-2 weeks of grocery bills
- Electronics—computers, tablets, cell phones
- Medication or medical device costs (even if you have health insurance)
- Appliances owned by the renter (not by the homeowner)
- Novelties like toys, books or movies
Items you might be able to leave off your possessions coverage includes easily replaceable items like toiletries, undergarments or other items of lesser value.
Keep in mind that your policy will likely come with a maximum limit on possessions coverage. Furthermore, possessions coverage might exclude particularly unique items. For example, you might not be able to cover jewelry or artwork within standard possessions coverage. You might have to invest in policy riders to extend coverage to these exceptionally valuable items.
Therefore, when looking for renters insurance, talk to your insurance agent. Ask them to help you determine the adequate value of your possessions coverage. Keep documentation of your possessions’ values, such as appraisals or receipts, to help justify these claims. Let Insurance Planning Services help you with your renters insurance and possession coverage, get started today by calling 734-421-9900 or 800-220-5582.