When obtaining renter’s insurance it is important to put serious consideration into how much insurance you really need to buy. Some things you may want to consider when making this decision include whether or not you can afford to re-purchase everything in your home in the event that disaster strikes. You may also want to ask yourself what you would do if a neighbor slipped and fell on the wet floor in your kitchen and decided to take legal action against you.

How much personal property coverage you need to buy naturally is based on how much your personal property is worth. An excellent way to assess how much money to invest in your policy is to take an inventory of what you own. Beside each item you should account for when you attained it and how much you paid for it. Once your inventory is complete you should tally the amount of everything you own to come up with a general idea of how much your possessions are worth. You should always keep this inventory in a safe place away from home such as a safety deposit box so that if your home is lost to a fire your property inventory will be safe. It may be wise to take photographs of high-end or sentimental property as well.

The following chart is representative of typical replacement costs for a two-bedroom apartment. These amounts are not exact and will vary.

Personal Property				Replacement Value

Furniture 					  $8,907

TV, VCR, Stereo, Tapes and CDs			  $1,777

Home Computer					  $1,647

Microwave					  $151

Other Appliances			          $ 240

Clothing					  $3,700

Paintings, Prints, Photos			  $792

Glassware, China, and Silverware		  $612

Sports Equipment				  $600

Cameras and Photographer’s Equipment		  $795

Books						  $704

Jewelry						  $1,023

All other property				  $4,000

Total Personal Property			          $24,948

Something else you may want to consider is that although the personal property loss settlement provisions determine how much will be paid out on your property in the case of a loss there is a dollar limit for particular types of material goods. The following example shows the typical amounts involved:

Money, Bank Notes, Coins (including collections) $200
Property used or intended to be used in business

On premises $1,000

Off premises $250
Watercraft and equipment $1,000
Securities, Checks, Traveler’s Checks $1,000
Trailers (not used with watercraft) $1,000
Stamps, trading cards, comic books (including $2,500
Collections)
Theft loss of:

Jewelry and Furs $1,000

Firearms $2,500

Silverware and Goldware $2,500

Rugs, tapestry, wall hangings

Per item $5,000

Aggregate $10,000

Home computers $5,000

Antiques, fine arts, paintings, statues and comparable items that are irreplaceable and belongings not useful for its proposed function are restricted in coverage to market value. However, if you have an abundance of items that fall into this category do not fret, special coverage may be available. Ask your agent about an endorsement or personal articles policy.