Tenants or Renters Insurance Policies
If you rent a dwelling or apartment you are responsible for insuring your personal property and liability. You may just be starting out on your own with lots of hand-me-down items but if they are all gone do to fire or theft the cost to replace them all can be costly.
Replacement cost is the amount it would take to replace or rebuild your home or repair damages with materials of similar kind and quality without deducting for depreciation.
Actual cash value is the replacement cost minus any depreciation (decrease in the value due to age, wear and tear, since the time the structure was built or purchased)
Often times there is difference between a property’s Market Value & Replacement Cost. The insurance industry is more concerned with Replacement Cost since this involves the price of materials and labor.