It’s important to know if your policy will cover on an actual cash value basis or a replacement cost basis. Actual Value vs.
Replacement Cost Coverage Actual cash value plans only pay out what the items were worth at the time of the loss.
You won’t be able to replace the loss with a brand-new item because the market value has depreciated—think of it as the garage sale price. The cost of a new replacement will be covered by replacement cost coverage.
Make sure to talk to your insurance agent about your policy’s limits and the specifics of how claims are paid.
Only one example exists. If you broke your computer while traveling or someone fell and broke their leg on your property, your insurance would likely cover the cost.
If you cause damage to someone else’s property outside of your own apartment, some policies even cover your liability.
The term “off-premises” coverage refers to the fact that your policy covers your belongings regardless of whether they are in your apartment.2 There is a good chance that you will require assistance from insurance at some point.
