Replacement Cost Renters Insurance
Depending upon what part of the country you live in, as well as the valuables you own, Replacement Cost renters insurance might be either more available or a better deal for you.
While actual cash value renters insurance will only reimburse you for the current value of stolen or damaged items less the deductible, replacement cost renters insurance covers the full cost of what it will take to replace these things with new ones of similar material and quality.
While actual cash value insurance costs a little less, if you own items that would cost a lot more to replace than their current market cash value, that's the type of insurance that you will most likely need. Consider this: if the television you've been living with, while perfectly functional, is several years old, its cash value is very little. It isn't the kind of thing a thief might be interested in, but should that perfectly functional television be damaged in a fire, for example, an actual cash value insurance policy will give you almost nothing; certainly not enough to replace it with a television of similar size. A replacement cost insurance policy, on the other hand, recognizes that you can't replace a television made several years ago with a new one without coming out of pocket; these policies cover the difference.
Needless to say, because this type of insurance pays out more for many items that have been damaged or stolen, the cost might be a little more. But if you've been perfectly happy with what you've got and can't afford to bridge the replacement gap, this might be a better type of insurance for you.
As well, if you collect first- release CDs, antique paperweights or other unusual or unusually valuable items, the few extra dollars it costs to purchase a replacement cost insurance policy might be more than worth it.
Be aware that depending upon what part of the country you live in, finding replacement cost insurance for renters might be easy or a bit more difficult. However, if this is the type of policy for you, hunting around a little makes it worth the time it takes. If it isn't available, you will most likely be able to add protection in the form of riders to the actual cash value policy.
Renters Insurance Directory