1. Figure out how much your stuff is worth.
“There is value to everything when it comes to renters insurance,” says Terry McConnell, vice president, Personal Lines Underwriting, at ERIE.. “Most people underestimate the value of their contents, but once they itemize them, they realize there’s a dramatic difference from what they initially thought.”
To get a clear idea of your belongings’ worth, check out ERIE’s Home Inventory Record.
2. Decide between actual cash value and replacement cost.
Actual cash value takes depreciation into account when calculating the worth of your belongings. So if you bought a brand new laptop for $1,000 five years ago, you’ll only be reimbursed for what the laptop is worth in today’s dollars minus depreciation.
Replacement cost is a better option: It reimburses you for the original value of the item (or one of similar kind and quality at today’s replacement cost if the item is no longer available) and costs only slightly more than actual cash value.
3. Consider earthquakes and other disasters.
Your ERIE Agent can tell you more about adding these extra coverages to your renters insurance policy.
4. Choose a deductible.
Think about how much premium savings you’d want from picking a higher deductible and how much you could afford to pay out of pocket should you experience a loss.
5. Think about extra protection for any valuables.
ERIE offers $3,000 worth of coverage for any one item that’s stolen. If you own pricey items like jewelry, furs or silverware, you’ll probably want to add an endorsement to your renters insurance policy to make sure they’re fully covered.
6. Pick a liability limit
“Think about all the ways you could accidentally hurt someone,” says McConnell, “and you’ll see there are many.” If your dog bites another animal or person, you’ll be held responsible, for example. That kind of lawsuit can get pretty costly if the injured person has any long-lasting physical scars or impairments. (If you’re concerned about having enough liability protection, consider an umbrella policy that offers an extra $1 to $5 million in coverage.)
Finally, remember that no matter where or what you’re renting, your ERIE Agent is always there to help you get the right coverage at the right price.
Did you know?
Purchasing both a renters and an auto policy can qualify you for a multipolicy discount. In some cases, the discount actually pays for the renters policy.*
*Individual policies may differ.