The personal property covered in a renters insurance policy usually includes coverage for your computer against certain risks or 'perils.' The most common claim types concern fires or stolen items, so your computer would usually be covered if one of these perils were to occur. However, you will find that there are situations in which your renter's insurance policy will not cover damages to your computer or laptop. The average policy does not cover events like earthquakes and flooding. Moreover, maintenance issues and personal negligence are not classed as peril and are therefore not covered by most policies. So your computer probably won't be covered if it breaks down or gets damaged by being knocked off your desk. You must read your policy carefully to understand what is covered, so you aren't caught out when you try to make a claim.
What You Need To Know.
Whether you have already bought renters insurance, or you are just looking for information about renters insurance for laptops, you need to know how much coverage the average renter's insurance policy provides for your computer or laptop, so you aren't taken advantage of. The personal property coverage limit is the maximum amount your insurance provider will reimburse you after a covered loss. So coverage limits will determine whether your renter's insurance fully covers your laptop or only reimburses you for part of it. However, even if you have $25,000 in coverage through your policy agreement, you will not get a check for $25,000. You must file a claim detailing the items you lost in the covered peril. And the type of policy you have will determine how your insurance company will reimburse you...
Actual Cash Value Coverage.
This kind of personal property coverage takes the depreciation value of your computer or laptop into account when you are making a claim. This means that your agent would look at the evidence you provided and do research into the current pricing of the items listed in your claim. They determine the cost of replacing your personal belongings and reduce this amount, taking into account possible depreciation from factors such as age or wear and tear. They then supply you with a figure to accept or decline. For example, if you purchased your computer for $1,000 a few years ago and it had just been stolen, a policy with actual cash value coverage would reimburse you for the current value of the computer, which may be less than the cost of replacing it.
Replacement Cost Coverage.
As its name would suggest, replacement cost coverage insurance helps you replace covered items. Although these policies are usually more expensive, this type of policy may reimburse you enough to purchase a similar one at today's price as, unlike actual cash value coverage plans, replacement cost coverage policies do not factor in depreciation when you make a claim. This means your insurance provider will typically help cover the cost of buying a new item, or one of a similar make and model, at today's price, which is very beneficial if you enjoyed working on the type of model you had before the peril occurred. However, if you have more than one laptop or another expensive electronic, then the cost of your insurance premiums may become too much. In that case, you can purchase a 'rider' to cover your computer specifically.