Renter’s Insurance: When to Update your Coverage Amount

Deciding on just what policy offers you the right amount of coverage can be a little complicated, but there’s a surprisingly easy solution: just talk to the company you’re already insured by. Odds are you have some sort of insurance policy in place, such as auto insurance.

Rob Carlson was able to get a particularly good deal when he went shopping for his renter’s insurance in Baltimore, Maryland: “It wound up being basically a wash—I got a 10 percent multi-policy discount with my auto insurance.” Carlson’s rates meant that a policy that comfortably covered his possessions cost 1/10 of the price of his auto insurance.

Once you’ve had a policy in place for several years, you may want to revisit it. Changing circumstances, from a new apartment to large purchases, may make a policy with higher coverage appealing.

It’s worth checking beforehand to see exactly what your current policy covers, especially if you’ve purchased inflation coverage or any other options that help you keep coverage appropriate to your changing situation without having to change policies on a regular basis. Most renter’s insurance policies have an option for inflation coverage at a minimum. Your premium may be slightly higher (or may change with inflation), but such coverage can be worth it.

Renter’s insurance can be doubly important when you’re moving into a new apartment. Many landlords now make renter’s insurance a condition of renting: if you don’t have insurance, you aren’t moving in. Even those that don’t require such insurance typically recommend it. Most leases are written so that the landlord has no obligations to you in the event of theft or damage to your possessions.

Tiffany Ralph had to bring a print-out of her policy number and other information from the insurance company when she moved into her apartment in San Jose, California. She says, “I’m guessing they checked the amount of coverage themselves.” Landlords can also check on a regular basis to make sure that you’re keeping up coverage.

Any tips for how much coverage you need or other renters insurance advice? Share below!