What would it cost you to start over again if you found your apartment ransacked? What if a fire destroyed everything you own? To find out how much renter's insurance you need, start by tabulating what it would cost to replace it all. Insurance for renters can typically cost as little as $12 a month for $30,000 in property coverage and $100,000 in liability protection. You could bring that affordable amount down even more by accepting a higher deductible---that is, the amount of loss you'll be responsible for before your renter's insurance policy kicks in.

On the Other: Replacement Cost Coverage Beats Actual Cash Value

Even though it will cost you about 15 percent more, assume the extra cost and get "replacement cost coverage" rather than "actual cash value" coverage. To envision the difference, figure out what your three-year-old laptop computer is worth now against what it would cost to replace it with a brand new computer of the same or comparable make and model. Obviously, the replacement cost---buying new---is higher than the actual, or current, cash value of your used computer.

Bottom Line

Renter's insurance is a sound and inexpensive investment that could save you money in the long run while delivering peace of mind.

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Why Renter's Insurance?

Resource:

Why Renter's Insurance