— How much insurance you need for your personal
property comes down to what you need to insure.
cars, the insurer simply looks up a vehicle’s value
and assigns it to the policy. In fact, auto policies
typically don’t even state the amount of coverage for
a vehicle — just the deductible.
homeowner, on the other hand, needs to determine the
amount of money it would require to rebuild the home if
it were destroyed — and it takes a little more
expertise to get that number right.
homeowners pay more attention to auto insurance than
home insurance," said Robert Large, vice president
of Pacific Specialty Insurance Co. in Menlo Park, Calif.
"It’s understandable because auto insurers
bombard consumers with TV advertising.
because most families have two or more cars, most spend
more on car insurance compared to the typical home
like to teach our customers to be better risk
managers," he said. "Losing a car will cause
some pain, but you wouldn’t be financially ruined as
you would if the house was destroyed and wasn’t
the most underappreciated form of personal property
insurance could be renters insurance.
the fact that millennials (age 23 to 35) are renting in
unprecedented numbers, the majority of them — 56
percent — do not have renters insurance, according to
a survey commissioned by Nationwide Insurance.
clear that there’s a misconception among millennials
about the importance of renters insurance and how much
it really costs," said Mark Hara, vice president of
marketing for Nationwide Insurance in Columbus, Ohio.
average monthly premium for a renters policy with
Nationwide runs between $15 and $20 for up to $100,000
2008, Nationwide said it has paid more than $184 million
in renter’s insurance claims, averaging nearly $4,000
said with a homeowners policy, there are several factors
to consider when deciding the amount of coverage needed.
insurer should compare survey cost estimates with actual
claim payments," he said. "Also important is
‘guaranteed replacement cost,’ which comes standard
in better policies. That assures there will be enough
money to rebuild the house even if the cost exceeds the
home insurance amount."
renters share many of the same risks as homeowners, they
also have many of the same protections under an
homeowners policy will protect the whole home, including
the structure, contents and the people inside. Renter’s
insurance protects the value of the contents of the
dwelling and covers injuries suffered by people on the
homeowners and renters policies also protect possessions
if they are lost or stolen outside the home, although
neither extend to losses related to motor vehicles.
standard policies have limits for certain valuable
possessions — such as jewelry, antiques, silverware,
furs or fine arts — which need a so-called personal
property insurance endorsement, or floater, to be
included in coverage.