Actual Cash Value Renters Insurance
Whether you ultimately decide to purchase actual cash value (ACV) or Replacement Cost renters insurance will depend, in part, upon the value and type of things you possess. As well, you may not be offered a choice; some companies may only offer one type of insurance, or limit the type you can buy based upon the total value of the items you are insuring.
Actual cash value renters insurance limits the amount of potential payment to the cash worth of your damaged or stolen items at the time of the incident. That means that if the top- of- the- line electric tools you bought seven years ago that have worked perfectly well ever since are stolen or ruined, you'll receive nowhere near the cost of outfitting your toolbox again.
However, there can be upsides to actual cash value insurance. For one thing, it is less expensive. For another, since many of the items a thief might be interested in are electronics, and since electronics continue to grow less and less expensive for more and more features, in some cases Actual Cash Value Insurance might turn out to be not only acceptable, but preferable.
Of course, for people who own little, as well as for those who use the computers on- campus or at work and feel they can get by should the elderly television or DVD player become damaged or get stolen, then actual cash value insurance is the way to go.
If you're thinking that most of your valuables are the antiques you inherited from Aunt Sadie, your grandmother's wedding diamond and a couple of sketches by highly respected artists, and that Actual Cash Value Renters Insurance sounds fine to you, there is one thing to be aware of. Most companies limit the amount they will pay on art, antiques, furs, collectibles and fine jewelry. In this case, you'll need to purchase additional insurance on these items in the form of riders. That way, should you be robbed, experience a flood or fire, while no amount of money will replace these family treasures, the amount you get will be closer to their real worth.
Depending upon what part of the country you live in, you may have to do a little shopping to find a company that offers such plans. Some areas are more likely to offer Actual Cash Value Insurance, while other regions might more commonly offer Replacement Cost Insurance.
Renters Insurance Directory