Now that you have decided to purchase renter's insurance, here are the things to consider when purchasing your renter's insurance policy:

1. Dollar Amount of Coverage: This is probably the most important factor in the price and coverage. A dollar amount is not placed on each piece of property; however, a fixed amount is decided for all of your possessions. Of course, the more coverage you purchase, the more expensive the policy.

2. Deductible: This would be an important factor to consider in the cost and how much you are willing to pay out of pocket before your insurance takes over. Coverages subject to the deductible would be everything except liability coverages, like paying for your friend's medical expenses.

3. ACV(Actual Cash Value) or Replacement Cost: When the insurance company comes to reimburse you for your new furniture and electronics what they give you is determined by these factors. A basic policy will pay you ACV, which is the value of the property at the time of loss. But, if you choose replacement cost you will get an actual replacement. For example, your new furniture will be replaced with as much money as it would cost for you to purchase a new comparable set. Expensive items prone to theft such as jewelry and collectibles, only have limited coverage so it is wise to place these items on a separate policy. Replacement cost is well worth the small amount more it may cost for your policy.

4. Location and Previous Claims: Depending on the area you are renting in, you may pay more or less for insurance.  Areas prone to thefts have increased insurance rates.