Renters Insurance
Don't forget this step.
Our two cents
Our two cents
Replacement cost coverage vs. actual cash value (ACV)—When you shop for an insurance policy, understand whether you are buying coverage for your belongings' full replacement cost or for its lower depreciated value (otherwise known as ACV). And always keep an inventory of your possessions, complete with photos, written lists and even a video for proof of ownership.
Your homeowner's policy may cover your children in a dorm room, but not in their own apartment. So when your kids are on their own, it's time to consider renters insurance.
Why renters insurance is a smart option
If your young adult owns items that would be costly to replace—such as laptops, audio equipment, musical instruments, textbooks, furniture, or bikes—renters insurance can make sense. Some policies may offer meaningful coverage for a relatively low annual premium, though costs vary by location, coverage amount, deductible, and policy type.
If your son or daughter owns unusually expensive items, like a rare piece of jewelry or artwork, they may need additional coverage often called an insurance rider.
Make sure they understand what is—and isn't—covered. Standard renters insurance may cover losses from events like fire, smoke, theft, vandalism, and windstorm, but flood and earthquake damage are typically excluded and usually require separate coverage. In some hurricane-prone areas, wind damage may also require additional coverage or come with special limits or deductibles.