Do like your HDTV? How about your fancy new cell phone, or those Jimmy Choo shoes?
Imagine if they were all to be damaged beyond repair.
Not a nice thought.
A 2016 poll conducted by the ORC International found that only 41% of renters had renters insurance.
That means that a whopping 61% of renters are liable for replacing all of their possessions if an accident happens.
A common misconception is that renters insurance is too expensive. But according to the National Association of Insurance Commissioners (NAIC), the average renter’s insurance policy costs between $15 and $30 per month.
Want to know how much you’d be paying for renters insurance?
Read on to see four ways you can calculate it:
4 Ways to Find out Your Renters Insurance Estimate
Take an Inventory
I’m sure you’ve experienced that credulous feeling when you’re packing up your house, and you can’t believe how much stuff you have.
The first step towards finding out your renter’s insurance estimate is to take an inventory of everything. I’m not just talking big things like your sofa and stereo. I’m talking clothes, kitchen appliances, and even cosmetics.
A great way to keep track is to take photos of your items. This is a great form of added protection, which you can store along with your inventory list. This will be really valuable for if you ever need to file a claim.
Decide What Type of Renters Insurance You Want
The cost of your renter’s insurance is dependent on what type of insurance you want. You can choose between insurance that pays out the replacement cost value (RCV) or actual cash value (ACV).
Replacement cost value insurance will pay the cost of the item at the present time, according to its current worth. This cost will usually be more but may be worth it in the long run if you suffer a catastrophic loss.
With actual cash value insurance, you will only be paid out what the item is worth at the time of loss. This amount takes into consideration the factor of depreciation, so it will usually be less than what you paid for the item.
Calculate the Value of Your Possessions
If you added up the value of all your possessions, you’d be surprised by how much they are really all worth. I’m not just talking TVs, electronics, and jewelry. There’s also furniture, clothing and even your tools.
If you’ve opted for replacement cost coverage, you can use an online retailer such as Amazon.com to check the price of your item to date.
If you’ve chosen to take out actual cash value insurance, you can research what your items are worth by checking the price that they are going for on an online secondhand store, such as eBay.
Consider Your Location
As they say in retail – location, location, location. The location of your rented apartment could have a major impact on the amount of renters insurance you’ll have to pay. Areas in which the crime rate is high typically have higher rental insurance rates. The likelihood of a natural disaster happening will also increase this cost.
You can assess the crime rate and risk of disaster in your specific area and use it to determine your renters insurance estimate.
Get A Quote
To get an accurate renters insurance quote, contact us today.