Types of Renters Insurance

 

You should determine if the renters insurance you are getting will provide actual cash value coverage or replacement cost coverage. With actual cash value, you can only claim your property's value at the time of the loss. If your property has depreciated since the time of the original purchase, then you will suffer a permanent loss. With replacement cost coverage, the insurance provider will give you the actual amount needed to replace the item. As can be expected, insurance providing replacement cost coverage has a higher premium. Most renters’ insurance plans have a provision to cover your living expenses in the unfortunate event that your house becomes inhabitable. The reason why your dwelling has become unlivable must be because of a covered loss. In this event, the insurance provider will reimburse you of the additional cost incurred living elsewhere. *NOTE* How much the insurance provider will provide depends on what was stipulated in your insurance policy.