Most renters should buy enough personal property coverage to replace everything they own, often $20,000 to $50,000, plus at least $100,000 in liability coverage (many choose $300,000). The right numbers depend on your stuff and your savings. Here’s how to work them out in about 20 minutes.
Step 1: Estimate what your belongings are worth
Go room by room and total what it would cost to buy everything again new. People usually underestimate this. A rough checklist:
- Living room: sofa, chairs, TV, speakers, rugs, lamps, shelves, decor
- Bedroom: bed and mattress, dresser, bedding, clothes, shoes, coats, accessories
- Kitchen: cookware, dishes, small appliances, table and chairs, pantry contents
- Office and tech: laptop, monitors, phone, tablet, desk, gaming systems
- Bathroom and closets: towels, toiletries, luggage, cleaning equipment
- Other: bikes, sports gear, instruments, books, hobby supplies
Clothing alone often costs more to replace than people expect. Round your total up, not down.
Step 2: Pick replacement cost coverage
Your estimate should use new prices, and your policy should pay replacement cost. An actual cash value policy could leave you far short even with a high limit. Here’s why.
Step 3: Flag your valuables
Jewelry, watches, cameras, collectibles and similar items usually have special lower limits. List anything worth more than about $1,000 and ask about scheduling it separately.
Step 4: Choose a liability limit
Start at $100,000 at minimum. Consider $300,000 to $500,000 if you have savings to protect, a dog, or frequent guests. The price difference between tiers is often small. More on liability.
Step 5: Check loss of use
Loss-of-use coverage is often set as a percentage of your personal property limit. Think about what a month or two in a hotel or short-term rental would cost in your city and make sure the amount is realistic.
Step 6: Pick a deductible you can afford
A higher deductible lowers your premium, but choose one you could pay tomorrow without stress. $500 and $1,000 are common choices.
Bonus: make a home inventory now
Take a slow video of every room, open closets and drawers, and store it in the cloud with photos of receipts for big purchases. It takes minutes and makes any future claim much faster. See how claims work.
New to this? Start with What is renters insurance?
This site offers general information, not insurance or legal advice. Coverage, prices and rules vary by insurer, policy and state, so always read your own policy and ask your insurer or agent about your situation.