How to Update a Renters Insurance Policy

Renters insurance provides liability and personal property coverage to those who rent instead of own their home or apartment. In case of fire, theft or other disasters, a renters insurance policy often compensates you for the actual value of your personal items, or pays you the cost of replacing destroyed items. Update your policy when you acquire costly items to make sure you have adequate coverage if disaster strikes.

Instructions

Difficulty: Moderate

Things You’ll Need:

• Receipts and appraisals
• Renters insurance

1. Update your renters insurance policy each time you move. Notify your insurance agent of your new address and ask if a new policy is necessary to continue your liability and personal property coverage.
2. Notify your insurance agent when you acquire expensive jewelry, electronics, antiques, art or other costly personal items. Review your policy coverage limits with your agent to determine if they are adequate to cover the loss of your newly acquired items. Add an endorsement to your policy to cover individual items of significant value.
3. Contact your insurance agent if you buy a dog or other pet. Investigate the effect certain types of dogs have on insurance rates before you bring your new pet home. Ask if your liability coverage increases with a pet in the home.
4. Review your renters insurance policy annually. Calculate the replacement cost of your personal belongings including furniture, clothing, electronics and appliances. Check the amount of coverage provided by your insurance policy. Update your policy if the cost of replacing what you own exceeds your insurance coverage.
5. Ask your insurance agent if getting a new roommate is reason enough to update your renters insurance policy. Contact your agent when a roommate moves in or out.

Tips & Warnings

• Keep copies of the receipts and appraisals of high-value items in case of disaster. Store your records in a safe location.