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Tenant insurance is a type of insurance that will cover the personal belongings in your home. The landlord will have the property insured, but it is up to you to make sure that everything within it is protected. You would, for example, lose all of your personal items in the event of a fire, unless you had tenant insurance.
Generally speaking, you will want to give yourself options in the event of an emergency, and you want to be sure that you can replace the items than you might lose, such as televisions and computers, other important electronics. Most insurance companies have two methods for evaluating their payout amounts:
1) Actual Cash Value is the value of the item at the moment that it was lost. So if you bought a television last year for $500.00, your insurance would only pay you what the same television would be worth today, which is most likely a lot less.
2) Replacement Cost, is the value of the item as it is today. So if you had lost a Plasma flat screen television, the insurance company would pay you to replace the same television at today's price.
It is important to check with your insurance companies to see whether they offer just one or both insurance options. Also, keep in mind that the replacement cost option - in comparison to the actual cash value option - tends to have higher premiums, since the returns will be of higher value. It is up to you to decide which type of insurance fits your budget and find a company that can accommodate your specific requests.