That is a question I hear everyday and thankfully the answer is usually the same: The amount you need to cover the contents you own in your rental unit. Whether you are renting a small one bedroom apartment or a full house you need to take an accurate inventory of your belongings to make sure that you have the right amount of coverage to replace EVERYTHING that you own. In the past I have heard people using a rule of thumb at $10,000 per room rented. That includes the kitchen and bathrooms. The amount can increase if you have high end furniture or an expensive wardrobe. If you have collectibles, jewelry or other valuable items you might want to look at getting an inland marine policy to cover those items separately.
Rich gives you a great answer, let me just add a few comments. While many folks renting are aware of the value of your contents remember that you want to be sure to specify to your agent that you want replacement cost coverage. Getting a settlement of $10 for that 200 lb TV is not what you want. You want to have enough coverage to replace your contents. The other thing I want to point out is that the liability coverage in the renters policy like the liability section of homeowners in general is very competitively priced. Don't skimp here. If you are inclined to buy a 100.000 in coverage, ask your agent how much more would 300,000.be. i think you will be pleasantly surprised.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
There is a simple way to determine how much coverage to purchase on a renters policy. Get a camera and take a picture of every room to include closets and dressers. Dispassionately list the things that you see in the photos that are your property. Alongside the list enter the cost to buy a replacement item. This should actually become two lists because you can list the value of the used item or the cost of a new replacement item.
Total the lists and decide if you want replacement cost coverage or just want to have the used stuff replaced with other used stuff. The number that you select then becomes the amount of personal property insurance that you should purchase.
However, the really important figure is often neglected and that is the amount of liability insurance do you require. My rule of thumb is get as much as the company will write. A lawsuit can ruin you day and your future. Someone could slip inside your apartment and have major problems and you need coverage because you might be responsible.
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Total the lists and decide if you want replacement cost coverage or just want to have the used stuff replaced with other used stuff. The number that you select then becomes the amount of personal property insurance that you should purchase.
However, the really important figure is often neglected and that is the amount of liability insurance do you require. My rule of thumb is get as much as the company will write. A lawsuit can ruin you day and your future. Someone could slip inside your apartment and have major problems and you need coverage because you might be responsible.