Dollar Amount of Coverage

The dollar amount of coverage is one of the main factors insurance companies consider when preparing a quote. The dollar amount of coverage is a term that refers to the total amount the company will pay to repair or replace your belongings. In other words, the insurers aren't looking at the individual value of each item, but rather, at a lump payment beyond which they will not go. If you are willing to risk a lower payout from the insurance company in the event of a major claim, your >renters insurance premium will reflect that by being lower than for those who prefer to pay a higher premium for a potentially higher payout.

Some renters insurance companies will help you determine the total value of all your possessions by sending an appraiser to your home. More commonly, however, they will help you establish this amount by asking you to prepare a detailed list ( in some cases, documented with photographs) of each item of value.

Most policies begin with $10,000 of coverage for theft or damage to personal possessions, and $100,000 in liability. At the high end, most policies top out at around $35,000 coverage on personal possessions and $300,000 coverage on liability.






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