Determine your insurance needs
Hopefully, you now realize the importance of having the right type and amount of insurance coverage. The next step is to correctly determine your specific renter's insurance needs.
So, how do you go about determining your specific insurance needs? Once again, the first step is to get educated. This will help you immensely in understanding the various types of coverage, and in identifying your general needs, or at least what aspects of coverage you don't need. Then you will be prepared to determine your actual insurance needs.
The place to start in determining your needs is to make an inventory list of everything that you own. Just get out a piece of paper and start in one room. Write down everything that you have. While certain items are simple, like a couch and sofa, you also need to note how many sets of dishes and what type they are, the make and model of all of your appliances, how many slacks, shirts, ties, suits, etc., that you own. The easiest way to do this is to start in one room and write down everything. Then repeat this step in your other rooms. If you really want to do it right, or if you have expensive items, it might also be beneficial to video tape or take pictures of all of your property.
Once you have completed your list, now you need to figure out what it would cost to replace each of these items. Next to each item on your list, write down your best estimate of the replacement cost. if you are not sure of the cost, use store catalogs, advertisements from the newspaper, similar recent purchases, etc. to best determine the cost. You might even visit a local store to get the price on a similar item. When you are done, add all of the figures together. This now becomes the amount of property protection that you should have.
If you have a renter's insurance policy, then you need to evaluate your existing policy to identify and make any necessary changes. If you don't yet have a policy, then it is time to get some prices on renter's insurance.