Ilyce wrote an excellent article on renters insurance. . . lots of great info and tips. However, those that need renter's insurance often aren't aware of options available and don't know yet to ask the agent to explain the difference between replacement cost and actual cash value. So, as a footnote to an excellent blog post:
Home Insurance for Renters Option #1: Replacement Cost
The most comprehensive coverage for renter's insurance is getting one that covers the replacement costs of your belongings. If your home insurance for renters plan covers the replacement cost, then even if you bought your TV used for $50, the home insurance policy will cover the replacement cost, typically by purchasing a new, comparable TV at its current value. This type of insurance is important if you are good at finding good prices for your things, since replacing them at the cost your purchased them at will be difficult.
Home Insurance for Renters Option #2: Actual Cash Value
The less expensive, but less comprehensive option for renters is to get a policy that covers the actual cash value of your belongings. Since most of your belongings have depreciated over time, they will likely be worth much less than you would have to pay to replace them. However, this option is better than nothing.
There's a short video on my blog that also might be helpful: A Closer Look The video will open automatically in its own window on top of the page text. Thanks again, Ilyce!