Can I get renters insurance to cover the actual replacement cost of my possessions?

If you rent an apartment or house in Mesa, AZ, you probably realize you need to find a renters insurance policy to protect yourself in case there is a fire or burglary at your residence. INW Insurance Group can help you decide how much protection you need.

Renters insurance is surprisingly cheap because you don’t have to cover the physical building. You only have to figure out the value of your physical possessions, such as your furniture, clothing, entertainment system, etc.

Actual Cash Value and Replacement Cost

Which kind of policy you choose will also decide the size of your premium or price per month. Even though renters insurance is relatively inexpensive, you need to consider the value of the items you own and if you will need the full replacement cost.

Actual Cash Value

Normally, an insurance claim will take into account the amount an item has depreciated in cost since you purchased it. For instance, the television you bought two years ago has experienced some wear and tear, and the older model may not be considered very good anymore. If your renter’s insurance gives you the actual cash value of items taken or destroyed, that means that you will pay out of your own pocket to replace your items.

Replacement Cost

A policy which offers replacement cost is a little more expensive but you will be able to claim the amount that it would take to replace your possessions. During a disaster, you could replace your possessions and move on. 

Nobody wants to think bad things will happen in Mesa, AZ, but if something does happen you want to be protected. Call INW Insurance Group today to discuss the best way to protect your interests.