When buying renters insurance, it is important that you make an accurate estimate of how much it would cost to replace your possessions if they were lost in a fire, or other disaster. This is the criteria you use to determine how much renters insurance you need. Most people are surprised to find their belongings are worth far more than they imagined.
Before selecting an insurance company, take the time to make an accurate inventory of your possessions. Group things into categories such as furniture, collectibles, clothing, jewelry and so on. Go through each category, item by item, recording when each possession was purchased, how much it cost originally, and so on.
The digital camera has made picture taking a snap, so take pictures whenever possible. For example, you may want to take several photos of especially valuable items. Take pictures from different angles, showing the manufacturer’s stamp, etc. to authenticate your ownership. Estimate the purchase price and age of each item, and what it would cost to replace it, if it was lost to fire, broken, or stolen. Take this inventory and the photos with you when you meet with your insurance agent. He or she will use this detailed list to help you decide how much coverage you will need. Store the photos and the list in a safe place, such as a safety deposit box.
Once you have made your inventory, it’s time to choose an insurance carrier if you haven’t done so already. Go online and comparison shop for renters insurance. Be sure that you’re comparing renters insurance policies to other renters insurance policies. Some insurance companies offer discounts if you have other policies with their insurance company, such as auto or life insurance policies, or if you are ‘going green’. Ask your family and friends for the name of their insurance carrier. Are they satisfied with the service they’ve received from this company? Are they comfortable with their agent? Are claims paid promptly? Do rates sky-rocket after a claim? Take all these factors into account before selecting an insurance carrier.
It takes time to make an inventory, and to compare insurance companies, but it is time well spent. The peace of mind you will have once you’ve purchased renters’ insurance is well worth it.