Renters Insurance Explained

Make sure that you personal property is covered for Replacement Cost not Actual Cash Value. Replacement cost coverage pays the cost to replace your personal belongings without a deduction for depreciation.

The higher the deductible the lower the premium is the standard insurance rule, however, renters insurance has a relatively low premium so that selecting a higher deductible may not be worth the savings. Make sure that you ask for quotes listing the premium savings for the deductible options.

The basic Personal Liability coverage in a renters policy is $100,000, but for as little as usually $10.00 to $15.00 a year you can increase that coverage to $300,000 or even $500,000 Limits of Personal Liability coverage.

Flood and earthquake are not covered perils under a renters insurance policy. You need to purchase these coverages separately.