How much renters insurance do you need?

The amount of personal property coverage you need depends on how much your property is worth.

To better understand your needs, ask yourself:

• How much are my belongings worth?
• Could I afford to buy it all back again if it were destroyed in a fire or stolen?
• What would I do in the event of a liability lawsuit against me?

There are two ways to determine how much insurance you need:

1. Take a complete inventory of your possessions, listing each item, when you acquired it and the purchase price or current value. Totalling up the amounts of these items will give you a rough idea of what your property is worth. Once this is done, put your inventory in a safe place away from home -- for example, in a bank safe deposit box. Consider adding photos to your inventory -- they can help if you have a claim.
   
   
2. Ask your agent to help you estimate the total value of your belongings. A system is available to help you determine the approximate cost of replacing your possessions based on the size or number of rooms in your dwelling.

Something to Keep in Mind

Coverage for certain types of property has a dollar limit. Here is a typical list of the types of property that may have "special limits" in a renters policy:

• Money, bank notes, coins
• Business property (on and off premises)
• Securities, negotiable instruments
• Watercraft, including trailers, furnishings and equipment
• Trailers (other than boat trailers)
• Jewellery and furs
• Firearms (limitation applies to theft only)
• Silverware and goldware (limitation applies to theft only)

It is advisable to keep receipts from major purchases.

If you have this type of property, you may need special coverage -- either an endorsement or a personal articles policy.

Ask a State Farm agent about these items.