ARE YOU COVERED?

In terms of the major types of insurance policies, renter's insurance may be the most oft overlooked by the majority. Usually, people either assume that they are covered by their landlord's policy, or they assume that they don't need to worry about buying insurance for a house or property that they don't own.

STAYING PROTECTED

However, both of these assumptions are false. A renter needs to be concerned about the risk to their possessions that are on the rented property, and these possessions are in no way covered by a landlord's policy, and should be insured. With renter's insurance you will be covered in the event that something destroys the property (and your possessions) and you'll also be protected against theft.

ACV vs. RCV

One important thing to know when purchasing a policy, is whether the insurance company will replace your items at actual cost value (ACV) or replacement cost value (RCV). With actual cost, the insurance will pay the money it originally cost you to buy an item, while replacement cost will pay what it currently costs for you to replace an item. Replacement cost value is a better policy, as you can be ensured that you won't lose money, since you are recouping your items for current prices.