When selecting a renters insurance policy, consider the following factors:
Coverage limits—Ensure that the coverage limits offered by the policy are sufficient to replace all your belongings in case of a total loss. Inventory your possessions, including their estimated value, to determine the appropriate coverage limit.
Deductible—This is the portion you must pay out of pocket before the insurance coverage kicks in. Consider your budget and choose a deductible that aligns with your financial comfort level.
Actual cash value (ACV) vs. replacement cost coverage (RCC)—ACV coverage considers depreciation, meaning you will receive the current value of your belongings at the time of the loss. RCC provides funds to replace your items with new ones of similar quality without accounting for depreciation.
Additional coverage—You may consider additional coverage options, depending on your needs. This could include coverage for valuable items such as jewelry, electronics or artwork that may exceed the standard policy limits.
Flood, earthquake and hurricane insurance—Depending on your home’s location, your agent may also recommend that you add coverage to help you recover after events not typically covered by standard renters insurance, including floods, hurricanes and earthquakes.