How would you replace your belongings if they were destroyed in a fire or stolen? In the event of the unexpected, renter’s insurance helps make sure you’re protected. It’s important to understand your policy so you know what’s covered or not. Be prepared with five tips for apartment renter’s insurance.

1. Determine how much coverage you really need

If all your possessions got damaged, you’d want to make sure your coverage amount is high enough to replace your belongings. To get an accurate value, you can create a detailed list of your possessions and their estimated value. You can also take pictures of your items to help keep track of them.

2. Select a deductible

A deductible is how much you must pay out of pocket before insurance starts reimbursing you for damaged property. For example, let’s say a plumbing incident causes $1,500 of damage to some furniture and you have a $500 deductible. You’d pay $500 out of pocket. Your insurance policy would cover the remaining $1,000 if they accept your claim. In many cases, a higher deductible may lower the cost of your policy, so ask about options when choosing a policy.

3. What’s covered?  

Apartment renter’s insurance typically covers losses related to fire, theft, vandalism, plumbing and electrical malfunctions. However, many policies do not cover sewage backup, floods, earthquakes, and other “acts of God.” If your area is prone to extreme conditions, you may have the option to add additional coverage for a premium.

Which items need additional coverage?

Have unusually expensive items? When you’re thinking about what to look for in renter’s insurance, you may want to consider a floater. It’s an extra policy that covers valuable items if they are lost or stolen, including possessions such as:

  • Musical instruments
  • Expensive jewelry
  • Collectibles
  • Antiques
  • High-end electronic equipment
  • Sports equipment
  • And more

4. Types of reimbursement

There are two types of reimbursements for renter’s insurance: actual cash value (ACV) and replacement cost value (RCV). Actual cost value takes depreciation into consideration and pays what your possessions were worth at the time of the loss. On the other hand, replacement cost value pays the cost to replace damaged property with new items.

5. Additional living expenses (ALE)

If your apartment gets damaged and you need to live somewhere else for a while, temporary housing and expenses can add up quickly. Additional living expenses coverage helps with these costs, including hotel bills, meals and temporary rentals. Be sure to ask how long this coverage lasts.

Get a policy that’s right for you

Apartment renter’s insurance plans vary by location and company, so ask questions about your policy to make sure you get the coverage you need. The more you ask upfront about your policy, the more prepared you’ll be. In the event of the unexpected, having the right protection can be a big relief.