Insurance for cars and personal possessions are two new worries that 20-somethings must assume as they enter the real world. Renters insurance . Renters usually assume that the landlord's insurance will cover the contents of their apartment. This is not the case. If your stereo is stolen or damaged, your landlord's insurance will not cover the cost to replace it, but renters insurance will.
Renters insurance is a form of a homeowners policy.
It protects your personal possessions from perils including fire or smoke, lightning, vandalism, theft, explosion, windstorm, and water damage from plumbing. Replacement value will replace the item with one of the same like and kind. Actual cash value is replacement cost minus depreciation. This type of policy pays less than the full cost of replacing the item. Some items, like the diamond earrings your great aunt gave you for college graduation, probably cost more to replace than your policy coverage limit.