What percentage of personal property coverage limit is allocated for improvements for renters?

The allocation for improvements made by renters under a typical renters insurance policy is often set at 10% of the personal property coverage limit. This provision recognizes that renters may make modifications or upgrades to the rented space, such as adding built-in shelves or making other enhancements, which can increase the value of the property. By allocating 10%, the policy ensures that renters have some coverage for these improvements if a covered loss occurs, providing a sense of security and recognizing the investment they have made in their rented premises.

This percentage tends to be standard across many insurance policies, allowing renters to adequately protect their interests without excessively increasing their premiums. The other options present higher or lower percentages, which do not reflect the common practice in the insurance industry regarding improvements made by renters.