What Should You Know About Renters Insurance? 
I 'm glad you asked this question . I wish more people would before they listen to someone tell them that the lowest price is the best . Nothing could be further from the truth . For a very reasonable and affordable premium , you can get renter 's insurance that works right for you . First , pick the right limit for your personal property -LRB- your stuff -RRB- . there are some great tools to help you estimate this and the number 's bigger than you think . One of the best is on Allstate 's website -LRB- no , I 'm not an Allstate agent , I just like their tool -RRB- . Next , pick the right settlement option . Actual Cash Value -LRB- ACV -RRB- : The insurance company will depreciate everything you lost and write you a check for that amount up to the policy limit . Replacement Cost : The insurance company will pay to replace the stuff you lost with new , up to the policy limit . I usually sell replacement cost because most people would rather have new stuff . Keep in mind , if you choose replacement cost , your limit should be higher than if you choose ACV . Make sure you have broad form or special form coverage on your personal property . This will ensure you have coverage for theft . Lastly , pick the right liability limit . If an agent tries to sell you a liability limit of $ 100,000 , run away and find a new agent . If you get sued , it will likely be for a lot more than $ 100,000 . Here 's the worst part , the premium difference between a limit of $ 100,000 and $ 500,000 could be as low as $ 9 per year -LRB- that 's what it is with my company -RRB- . The most important thing you should know is that a good agent will take the time to find out about you and the things you own . Then , he/she will put together the right coverage to protect you . If it costs a little more , pay it . An extra $ 50 premium might save you thousands at claim time . 