A personal renters insurance policy helps in protecting you, the person who has rented an apartment or a property, against damages incurred due to fire, theft, electrical hazards, plumbing problems or any other issues that damages your rented property. But most of the people who rent an apartment don’t go for this kind of insurance. Many believe that the homeowner should have insurance covering their property. But the fact of the matter is the homeowners insurance doesn’t pay for any damages occurred to the renters belongings. Therefore, it is your responsibility to safeguard against your assets and belongings. Generally a homeowners insurance only covers the physical building and not to the renters assets. Hence, it is important for a renter to take out a personal renters insurance policy to take some kind of coverage for all their belongings— including jewelry, or any other prized possessions.

But a basic personal renters insurance doesn’t provide cover for all your prized assets and you may need to shell out some extra premiums to get covered on everything you have in your possession. Based on the worth of your assets and belongings, the premium amount for the personal renters insurance may vary. When it comes to renters insurance, the tenant can go for either replacement costs or cash value for the damage to his assets. While replacement cost will provide you with a payout that would help you to replace all the items damaged due to the accident. But the cash value offer will only provide you with  some cash amount equivalent to the value of assets damaged at the point of time.  So in general, cash value option doesn’t always provide you with the actual cost for the damaged properties.