Why Renters May Need Extra Contents Coverage

Is everything you own covered by your renters insurance policy? If you don’t know the answer off the top of your head, then chances are you’re underinsured. Many renters opt for the cheapest renters policy, which typically covers $10,000 worth of property, along with some liability coverage. However, the average renter owns approximately $20,000 worth of belongings.

What if you have a lot of stuff that exceeds the limits of a standard renters insurance policy? Or if you have expensive items or collections that are excluded from coverage? Luckily, contents insurance, designed to cover extraneous or high-value items, is available for these circumstances.

You can purchase either a blanket policy to add another layer of generalized coverage or a specialized rider to protect items of value, such as jewelry, fine art, musical instruments, electronic equipment, golf clubs etc. Either way, you have two coverage options to consider.

• Actual cash value: This coverage accounts for depreciation, which means that the payout may not cover the full value of new items at their current market value.
• Replacement value: This coverage accounts for the full replacement value of items at the current market value, even if their price has appreciated.

Specialized riders may require that you have items appraised so your policy reflects their accurate value. Extra contents insurance may require that you create a home inventory, which is essentially a list detailing of your valued belongings and their worth. This list helps your insurer determine payouts in the event of a loss.

Your independent agent is there to assist you with questions and to assess your needs so you can buy the best policy for optimal protection with minimal effort on your own part.

Don’t wait until disaster strikes to get the coverage you need. Call Pan American Insurance at (915) 562-0009 for more information on El Paso renters insurance.