If you’re a renter without renters insurance, you need to do some serious scrambling and get yourself a policy. Renters insurance is one of the top most overlooked forms of protection an individual renting an apartment or home can have. It’s also one of the cheapest and easiest to come by.

Unfortunately, too many people mistakenly think they don’t have enough possessions to merit insurance, or worse – they think renters insurance is the responsibility of their landlord.

Find out why both these assumptions are wrong and learn why it’s so essential to get your possessions insured.

What exactly does renters insurance do?

In most cases, renters insurance policies provide you financial protection for the following:

• Possessions you keep in your home. If your possessions fall victim to flooding, fire, theft, or some other type of damage, renters insurance will cover the cost of the loss.
• Possessions you keep in your car. If you keep important possessions in your car such as electronic devices, clothing, or sports equipment, renters insurance will cover these things.
• Any personal items kept in other locations, such as a storage shed. With a solid renters insurance policy you can get protection for your belongings regardless of their location. This includes anything you keep in storage or anything that is in transport, such as when you’re in the process of moving.

Believe it or not, your possessions are probably worth thousands

Another major reason few people bother to take out renters insurance is because they mistakenly believe their possessions aren’t worth much. Contrary to this assumption, if you’re an average renter, say, with enough possessions to fill a two-bedroom apartment, then you likely own roughly $20,000 worth of stuff.

This is even true if you’ve acquired your possessions as hand-me-downs or garage sale finds. The catch is that you need to consider the cost of replacing everything at once, not the individual price you paid for each piece.

Here’s an example of the cost-breakdown for furnishings in your average two-bedroom apartment:

• $5,000 for clothing
• $6,000 for furniture
• $600 for kitchenware such as cookware, silverware, and dishes
• $1,600 for electronic equipment, including your television, music system, and movie collection
• $1,500 for computer equipment and peripherals
• $500 for camera equipment and peripherals
• $400 for appliances such as your washer, dryer, and microwave
• $1,000 for home decorations, including artwork and collectibles
• $400 for books
• $1,000 for watches, jewelry, and accessories
• $2,000 for everything else

Why your landlord has nothing to do with your renters insurance

Too often, renters assume that their landlord is responsible for their possessions. They believe they’re provided with insurance protection because they live in a rental home or an apartment that is insured by their landlord.

While it’s true that your dwelling is probably insured by your landlord, his or her policy does not extend to any of your possessions. A landlord’s policy covers the property and building where you live, but that’s the extent of it.

Should a fire or some other disaster completely destroy your landlord’s property, he or she will be reimbursed for the cost of the building and any necessary repairs to the property. No reimbursement will be made for any possessions that were inside the property.- i.e., your stuff.

Accidents beyond your control are covered by renters insurance

Another common misconception of renters is that accidents beyond their control, particularly those that happen as a result of something that occurred at their rental property, will be covered by their landlord.

For example, if bad wiring at your rental sparks a fire that burns all your possessions, you’re still liable for the cost of replacement. Even though the cause of the loss was a direct result of something insured by your landlord, you’re still not covered by his or her policy.

Finding great renters insurance is easy

Fortunately, great renters insurance is pretty easy to find. It comes cheap – sometimes for as little as $10 month if you want a small policy, such as $2,500 in coverage. Larger coverage barely costs more – some companies provide $20,000 in coverage for only $15 a month.

To begin your search for renters insurance, start by tallying up the total estimated value of your possessions. Essentially you want to figure up how much money you’d need should you ever have to replace everything at once.

If you already have other insurance policies such as auto insurance or life insurance, check with your insurer to see if they provide renters insurance as well. You may qualify for a multiple policy discount if you go through your existing insurer.

If your insurer doesn’t offer renters insurance or if you have no other form of insurance to begin with, ask for recommendations from family and friends. You may even want to ask your landlord if he or she recommends a certain company. Sometimes landlords have agreements with insurers that get their tenants great rates.

Go the extra mile for your own protection

Even though it’ll take a bit of work upfront, it’ll be worth it in the long run once you know you have the security of renters insurance. Take the time to examine your options and be sure to follow through on taking out a policy.