Which Renters Insurance Is Best? 
We 've all heard the radio commercial `` get renters insurance for $ 4/month '' . How does this apply to you ? Can you really get renters insurance for $ 4/month ? Probably , but is it right for you ? Probably not . A renters policy is really just a homeowners policy without the building coverage . This is coverage for your `` stuff '' as well as your liability . There are a few things to keep in mind to be sure you 're getting what you need , not just whatever 's least expensive . Discounts are great but I 've never had a client that thanked me for a discount after they had a claim . Here are some things to keep in mind when choosing your renters coverage : Personal Property -LRB- your Stuff -RRB- - there are two ways an insurance company can settle your claim , Actual Cash Value -LRB- depreciated value -RRB- , or Replacement Cost . With ACV they 'll estimate what your stuff is worth and write you a check up to the policy limit . With replacement cost they 'll replace your stuff with new up to the policy limit . It 's important to get a good estimate of what your stuff is worth so , at claim time , you know what to expect . There are some good tools to estimate this . Your agent should have a guide from Marshall Swift/Beockh that estimates based on square footage or room count . The other tool is on Allstate 's website -LRB- no , I 'm not an Allstate agent , I just like their tool -RRB- , WEBSITELINK However you choose to estimate it , make sure you have some method . Also , I wo n't sell a renters policy on an ACV basis , it 's too uncertain . Personal Liability - This covers you if your sued for someone gets hurt on your property or if you hurt someone or cause damage . My recommendation is that higher is better . I will not go lower than $ 300,000 and usually will recommend at least $ 500,000 . The premium difference is tiny . Loss of Use - This often glossed over coverage is one of the hidden gems in your renters policy . If your rental home or apartment is damaged and you ca n't stay there , you 're insurance company will pay any extra costs you incur to stay at a temporary residence while your home is being rebuilt . This is a great coverage that nobody talks about . It 's usually a percentage of your contents limit and will pay for up to 12 months . So , in my opinion , the Best renters policy is one that has a high enough limit to cover all your stuff at replacement cost , has a high enough liability limit to protect you against a lawsuit , and has loss of use coverage . $ 4/month ? Probably not , but it 's not as expensive as you think . Find a good agent and they 'll help you put together the right coverage for you . 