While it’s nice to pay less for insurance, you also don’t want to be underinsured in case of emergency. You’ll need enough renters insurance to cover your needs without burning an unnecessary hole into your budget? Ask yourself these three questions.

How Much Is My Property Worth?

You can determine this by taking an inventory of your possessions. In a spreadsheet, note each item of value and its worth. You can then total up the dollar amounts to get a good estimate of the overall value of your property. Renters insurance is often sold in $10,000 increments, so knowing the grand total helps you select coverage that equals or even slightly exceeds the value of your stuff.

How Much Could I Afford To Repurchase?

Some people would rather accept the risk of purchasing a policy that covers a smaller amount in order to get a lower premium. Whether you choose full coverage or partial coverage, you’ll have to decide if you want your renters insurance to cover the actual cash value or the replacement value of your belongings. Actual cash value covers the depreciated value of items (meaning, you’ll get less than what you spent on that TV a few years ago), while replacement value covers the cost of comparable items by today’s rates.

What Is My Liability Exposure?

Many renters are focused on property and they forget about possible liability risks. However, any visitor who is injured in your rental unit because of your negligence, your kids or your pets can sue you for the cost of medical bills and other damages. Your independent insurance agent can help you determine the amount of liability coverage that suits your needs.

Get a free quote today. Call La Familia Insurance at (888) 751-7511 for more information on Dallas renters insurance.