Many renters aren’t aware of the need for and value of apartment renters insurance. We take it for granted that our property is covered by someone else, or that nothing bad will happen. Yet, when something does, anyone who is uninsured may find themselves in a precarious financial situation. Not only should renters insurance be considered a necessity for any tenant, but it is almost always very affordable for the amount of protection given.

Many people believe that they are insured when in fact they are not. Landlords typically insure buildings, but said insurance rarely covers tenants’ properties. Instead, it covers building structural issues such as fire and weather damage, but likely leaves tenants out in the cold. Even in instances where the landlord claims that tenants’ properties are covered, having your own policy is an inexpensive backup guarantee.

Many tenants in roommate situations may think that their roommates’ insurance covers their property. Again, this is often untrue. Apartment renters insurance policies are concerned with both tenants and their physical location, and any policy owned by a roommate likely only covers their property at the insured location.

Finally, some students feel that parents’ home insurance covers them in rental situations. This may be true, but it is important to check the wording of the policy before accepting this as a certainty. It’s better to do the research and be certain than it is to be in a tight spot and learn that you aren’t covered.

Renters insurance offers great value at an affordable price. First, it insures most property against theft or damage in the apartment. As many aspects of apartment life are beyond tenants’ control, such as unaddressed flooding in nearby units, not having this protection places you at unreasonable risks which you can do little to prevent.

Renters insurance also covers costs associated with inhabitants’ or guests’ injuries in your apartment. While a hopeful outlook is that others will have their own insurance, this isn’t necessarily a given, and protecting yourself against costs due to injuries caused by pets or negligence is a good step to take.

Unfortunately, renters insurance won’t cover everything. Floods, for instance, aren’t usually covered by default policies, so you may need to purchase something in addition should your area be at risk. Read the fine print closely before purchasing any policy, and know what conditions you are at risk for and what the policy covers.

Before purchasing any policy, take a detailed inventory of what you own. Determine its worth, supported by documentation if possible, and use that to deduce how much coverage to purchase. It may be wise to purchase more coverage than is necessary, particularly if injury liability is a concern. Some policies have a lower monthly rate in exchange for a higher deductible, but this translates into a lower payout in cases where the insurance is needed.

With any luck, you’ll never need the insurance you purchase. You’d likely be surprised, though, at just how much renters insurance covers for an incredibly low monthly rate. Some companies may lower the cost even further for taking preventative measures such as installing burglar alarms or fire extinguishers. Renters insurance is a great and inexpensive way to purchase peace of mind and protection against many risks of renting.