Renting a house makes life a lot easier than renting an apartment. Generally, you’ll have more space, fewer neighbors and you can enjoy having family and friends over without limitations. However, renting a house doesn’t afford you the ability of foregoing renters insurance. Renters insurance doesn’t protect the owner of the property, but it does protect you and your belongings. So, just how much renters insurance is enough? It depends on your belongings. 

Understanding the Types of Renters Insurance 
Much like homeowners insurance, there are different types of renters insurance. One policy replaces your items based on fair market value, while the other policy replaces your personal belongings based on replacement costs. Although it is more expensive, purchasing a renters insurance policy that bases indemnity on replacement costs may be the best option if you want to simply replace items that may be lost due to fire, theft or other covered events. This prevents you from receiving an indemnity check that may be less than what you expected from your insurance company. 

How to Determine How Much Renters Insurance to Purchase 
Before securing your renters insurance policy, it is important to know how much coverage you will need. Many financial institutions estimate that you may need between $20,000 to $30,000 worth of coverage, but that depends on the property that you have in your house. Below is an approach that will help you determine the value of your personal belongings. 

1. Make a list of everything you have, including clothes. 
   
2. Estimate the value of each item. 
   
3. Tally the costs of everything you own and round up.  

With an actual value placed on your belongings, you can now purchase the appropriate amount of renters insurance.  

Although taking an inventory of your property may be tedious and time-consuming, it is necessary so that you can purchase the right amount of insurance. Without this number, you may purchase too much or too little, and both situations can lead to you paying out of your pocket to replace your property in the long run.