The phrase “home sweet home” takes on a different meaning when you’re a military spouse!

Every move comes with decisions about living on-base or off-base, renting or owning, and choosing new schools. There is a lot to consider! One constant is the need to protect your stuff. For many military families, this means acquiring renters insurance.

Read on to learn about renters insurance basics, how to understand and evaluate a policy, and how this coverage could apply to your next PCS move.

Renters Insurance 101

There are many types of insurance including health, auto, homeowners, and life insurance. The purpose of renters insurance is to cover financial loss due to unforeseen events like theft, disasters, and accidents. These disasters could be major ones like a fire or hurricane or minor ones like your groceries spoiling due to a broken refrigerator.

Spoiled milk is one thing but take a moment to look around your home and think about the furniture, electronics, kitchenware, clothing, toys, and one-of-a-kind mementos. Now, imagine what it would cost to replace these items if they were stolen or damaged in a disaster. It can add up quickly and illustrates why insurance is so important.

Renters insurance policies typically cover your personal property, liability (see definition below) and additional living expenses like hotel bills if your residence is uninhabitable.

Policy Types and Terms to Know:

• Personal Property Policies: Covers losses from perils specifically stated in the policy
• Actual Cash Value (ACV) Policies: Coverage is calculated by property value minus depreciation, meaning the level of coverage may not cover current replacement cost of lost property
• Replacement Cost Policies: Damaged or lost property is replaced at the level you would have to pay to repair or replace the property
• Liability: This type of coverage can take care of damages (like medical expenses or repairs) if you are legally liable for someone else’s injuries or property damage
• Premium: The amount you pay on a regular basis (monthly, quarterly, etc.) to keep coverage active
• Deductible: The amount you agree to pay before your insurer starts paying; generally, the higher the deductible the more affordable the premium

Sizing the Right Policy for Your Stuff

The right policy for your needs depends on several factors. First, many landlords will require you carry renters insurance, so inquire on minimum liability and coverage limits.

Then make an inventory of your possessions and include purchase price, date purchased, serial number if appropriate and receipts of your higher-value items. Another option is to take photos or a video of your items. This exercise will help you get a handle on the value of your possessions and help size the coverage amount. One tip for this process — take photos or video of your items, especially the valuable ones. Keep a copy of this inventory record in a separate secure location away from your home, like online or in the cloud. In the event you need to file a claim for damaged personal property, your inventory record can provide supporting documentation.

Next, consider your financial situation. Determine what level of premium and deductible you can afford based on your spending plan and emergency fund. Treating a robust emergency fund as a method of “self-insurance” may allow you to maintain higher deductibles and thus lower premiums on your renters insurance policy. Renters insurance can provide coverage for potential catastrophic events, while your emergency fund can handle smaller expenses. Policy cost may also depend on geographic location, claims history, and your credit history. You may wish to add extra coverage for high-value items such as jewelry or consider adding riders to increase coverage not included in your base policy.

Finally, research insurance companies, request quotes, and compare costs and policies that provide your desired coverage at the best price.

PCS season is upon us!

Maybe you have just finished your move, are planning the pack out, or don’t have another PCS on the horizon for a year or two. Make sure you have the right property coverage, no matter what PCS stage your family is at.

Depending on your policy, your insured property may be covered in transit or in storage to your next duty station. Before you head out, it’s important to ask your provider and determine if you have any gaps in coverage as each policy is different. Visit Military OneSource for additional resources on moving your personal property during your PCS.

Finding your next “home sweet home” isn’t easy but protecting your stuff with renters insurance can provide peace of mind during the journey.

MilSpouse Money Mission® is a Department of Defense resource that offers FREE personal financial education specifically geared toward spouses. There is a Money Ready guide for various stages of financial life, a MilLife Milestones section to help you through the big moments in your military journey, a blog, spouse videos, quizzes, calculators and more!