Do you know your personal property worth? We all accumulate belongings over time. For insurance purposes, we call this “personal property”. If you're renting, we recommend having a renter’s insurance policy to protect your personal property. You need to estimate the value of your belongings to make sure they are all covered in case of a catastrophic loss.
How Much is My Personal Property Worth?
To calculate your personal property worth, first, you need to inventory your belongings. Start by taking pictures of your belongs like a snapshot in time. This would be supporting documentation in the event of a loss. Remember, a picture is worth a thousand words.
Second, you need to assign a value to each item in the pictures. When you assign a value to an item, it is the original purchase price. This includes TVs, chairs, pots and pans, plates, glasses, jewelry, etc.
Look at your closets too. Are they packed or do they have some space? I have some closets that are pretty packed. I like to go through them and put a value on each hanger – suit, sports jacket, dress shirt, etc. You’d be surprised at how much money you have in one closet of clothes.
Don’t forget the garage, attic, and other storage spaces. Items in off-site storage facilities should be recorded separately.
Bonus tip: As you are completing the inventory of your belongings, you might want to consider where you’re storing them. Is it damp? Is there a potential for mold? While you’re doing your inventory, note if everything is dry or if it smells mildewy or moldy. You might uncover a problem lurking in your closet.
Learn more about how to document the value of your personal propertyin this other article.
It all adds up to a number. That number is the value of your personal property for which you need insurance coverage.
Why Do I Need Renter’s Insurance?
It’s based on who owns the home (dwelling: the place where you live). If you’re a homeowner, you have homeowner’s insurance on the structure (your home) and everything inside it (your belongings). If you’re renting, your landlord has a dwelling insurance policy on the structure (the home) but NOT on anything inside. If you’re renting, your belongings are not covered under your landlord’s dwelling insurance policy.You need to get your own insurance policy to cover your belongings, which is a renter’s insurance policy.
Our Rockingham Group renter’s policies start at $15,000 coverage for around $9 a month. That way you’re protected. In some cases, your landlord will give you a discount on your rent if you have a renter’s insurance policy. I’ve heard of it happening, and it doesn’t hurt to ask.
Now that you’ve done all this work and added up the value of your belongings in all these rooms, closets, and storage areas, you might be surprised at the total value of your personal property.
Contact us at Bruce Gardner Insurance Agency to get pricing on a renter’s insurance policy.