Choosing Coverage: How Much Do You Really Need?

Why this matters

Devon is twenty-four, rents his own place, and owns $30,000 worth of belongings that his policy only covers up to $20,000. Most renters never learn they're underinsured until a fire or a break-in forces the question, which is exactly the gap this lesson puts in front of students first.

The deductible chart is the surprise: raising it from $250 toward $5,000 helps less and less the higher you go, and students have to find the exact point where it stops paying off. By the time they recommend coverage for a new client, they're defending a deductible against what that person could actually afford out of pocket, not chasing the lowest premium.

From one teacher to another

I built this one around a single decision I want every student walking away able to make: how much coverage is actually enough. The whole lesson runs through Devon, a 24-year-old renter whose belongings would cost $30,000 to replace but whose policy only covers $20,000, and students work the coverage-gap formula on his numbers themselves, then carry that gap into a real out-of-pocket bill on a total loss. The deductible-premium chart is the part that surprises them, since the savings from raising your deductible aren't a straight line, and I have them find the exact point on the curve where paying a higher deductible stops being worth it. By the end they're recommending a full coverage plan for a new client and have to justify the deductible against that person's actual savings, not just chase the lowest premium.