Bad things happen to everyone. For that reason, insurance companies came into being. The idea being is that the losses of the few is paid for by the many who also purchased the same kind of insurance coverage. As such, the total amount of claims paid each year is one of the factors that is used to set the premium rate for those who purchase such insurance which will pay for the possible loss of such insured property.

A renter’s insurance policy is usually purchased by people who rent space within a building that is owned by some other person or business. That space can be an apartment, a warehouse and/or shopping mall or other free standing commercial building.

The renter’s insurance policy insures the purchaser of such a policy against the loss of his or her tangible personal property that is contained within that rented space. As such, the most asked question is: “How much insurance coverage is enough?” Then again, what is the market value of your tangible personal property?

Therefore, it is wise for that person to save all of the purchase receipts and keep them within a safe place. It is also wise to make a list of all of your property and to take a picture of everything of value that you have within that rented space.

Keep in mind that items such as jewelry, antiques, works of art and other collectibles may not be covered by the terms of that renter’s insurance policy. If not, you will have to purchase a different kind of insurance policy that specifically does insure such losses due to a theft or some other type of loss.

For those other things, like furniture, appliances, clothes and other household goods, you should them determine the approximate resale value of those items. You see, in the event that you do suffer a loss, the market value of those items will be what you will receive from the insurance company. Then again, you should never purchase an insurance policy before you read all of the terms that pertain to what you will receive in the event that you do suffer a loss.

You might have a whole lot of tangible personal property but the age of that property at the time of your loss might only return less than ten percent of what those items cost to purchase new. As such, it is wise to have your property appraised by an expert who can usually provide a current market value to you, based on the condition, the age and its estimated useful life.

Having done the above, you now should have a good idea of the total estimate of value of your property and be able to purchase the amount of coverage that will at least replace some of those used items within the near future. No matter how much coverage you purchase, you will only receive the market value of your lost property. In other words, if your market value is $5,000.00 dollars it makes no sense to purchase more than $5,000.00 dollars of insurance coverage.