Renters Insurance

Renter's insurance policy is essential if you want to protect all your personal possessions from loss and save yourself from huge legal and medical bills, should someone be hurt or injured in your apartment.

Just like any other type of home owners insurance policy, your premium depends on a number of factors: where you live, your deductible, your insurance company, and whether you need any additional coverage.

Let your agent know about any particularly valuable items you have. You can thus receive an approximation of what a new renters insurance policy might cost.

Facts to Consider for Renters Insurance

One thing to look at is whether the insurance company will offer "actual cash value" (ACV) or "replacement cost coverage" for your belongings. As the name implies, ACV coverage will pay only for what your property was worth at the time it was damaged or stolen.

Therefore, if you bought a television set five years ago for 300 pounds, it would be worth significantly less today. While you'd still need to spend about that amount for a new TV, your insurance company will pay only for what the old one was worth, minus your deductible.

Replacement Cost Coverage

Replacement cost coverage will pay what it actually costs to replace the items you lost. Replacement cost coverage will reimburse you for the actual replacement cost of your property, up to the limit stated in your policy.

An insurer will generally make an advance payment to you for the 'used value' of the property, less your deductible.

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