Does renters insurance cover my computer?

First, it's important to understand how renters insurance covers your belongings. Renters insurance generally provides protection against certain risks, often described as "perils" in a policy. For instance, renters insurance may provide coverage for your computer if it's stolen or ruined in a fire.

You'll likely find, however, that there are certain scenarios in which renters insurance won't protect your computer. For instance, renters insurance generally does not cover maintenance issues or negligence, so your computer probably won't be covered if it breaks down or is damaged when it's knocked off your desk.

Read your renters insurance policy to learn what risks it covers.

It's a good idea to understand how much coverage your renters insurance policy provides for your computer (as well as your other belongings). The personal property coverage limit stated in your policy is the maximum amount your renters insurance will reimburse you after a covered loss. It's also important to understand what type of personal property coverage you have. When you purchase or update your policy, you may be able to choose from two types of personal property coverage: actual cash value or replacement cost coverage. Here's a look at how each one works:

• Actual cash value coverage:
  This kind of personal property coverage takes depreciation into account. Suppose you purchased your computer for $1,000 a few years ago. If it were stolen today, a policy with actual cash value coverage would typically reimburse you for the current value of the computer, which may be less than the cost of replacing it.
• Replacement cost coverage:
  This type of coverage helps protect your belongings without factoring in depreciation. Instead, it helps cover the cost of replacing an item with one of a similar make and model. So, when it comes to your computer, a policy with replacement cost coverage may reimburse you enough to purchase a similar one at today's price.

Some policies offer limited coverage for expensive electronics. Your insurance provider can explain how much coverage your renters insurance policy provides for a computer. You may have the option of purchasing additional coverage for your computer if you want more protection than your standard policy provides.

It's also important to keep in mind that you'll typically need to pay your deductible before your insurance will reimburse you for a covered loss.

When you buy a computer, having it stolen or damaged may be the last thing on your mind. But having renters insurance can provide a safety net and give you the peace of mind that comes with knowing you have protection for your belongings, just in case.