Claim Payments in Renters Insurance
Generally, there are two ways of reimbursement that insurance agencies usually offer:
- Replacement Cost Value: Pays for the replacement of your damaged properties as well as things that are lost. It provides enough to replace the items at their current market value. For example, the phone you use for three years gets stolen in your apartment. Your insurer can offer the current replacement value for a new phone with a similar model.
- Actual Cash Value: Pays for replacing your possessions based on their original prices from the time you bought them. For example, you’re using an old laptop, and suddenly it’s not working anymore. The actual cash value offers the same amount as your old laptop costs by the time you bought it. So for you to be able to buy a new one, you’d have to pay the difference.