Renters insurance should be enough to cover all of the contents that you own in a rental property. If you are renting a small studio versus an entire house, the amounts should be very different. A rule of thumb that has been taught to me was to use $10,000 per room rented. Also, check with your insurance company to find out what the minimum coverage is to have replacement cost. Without replacement cost, you will only receive depreciated value in the event of a loss. So that new TV you bought three years ago will be worth much less today. You would rather have the replacement of a new TV for an older TV. You should also include some sort of liability coverage when purchasing your renters coverage.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
The best way to think about it is, to imagine that your unit has been gutted by a fire. You have lost everything that you own. How much money will you want? If you take pictures of your unit you will know what you had. If you estimated the replacement cost for each item, you would know how much you would want. I suggest that number guide you in selecting a renter’s policy.
If a process server appears at your door with a lawsuit, how much back up do you want? I suggest you take as much liability coverage as the insurance company offers.
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If a process server appears at your door with a lawsuit, how much back up do you want? I suggest you take as much liability coverage as the insurance company offers.