• Landlords typically only insure the building and any fixtures they own within it, so renters are responsible for any lost or damaged possessions.
• If someone has an accident in your apartment -- or even gets bitten by your dog -- you're the potentially liable party.
• Your roommates must have their own policies or be named on yours; otherwise their possessions and liability are not covered.

For the peace of mind it brings, renters insurance is surprisingly inexpensive. It typically costs about $150 to $300 a year for basic coverage -- like ordering a pizza once a month. You may feel your belongings aren't valuable enough to insure, but suppose an electrical fire or burst pipe ruined your possessions: Think how much it would cost to replace everything -- not to mention pay for alternate housing during repairs.

Available Coverages:

• Personal Property - applies to the policyholder's personal property anywhere in the world. This includes items that the policyholder owns or uses. There are limitations to theft of certain types of items, such as jewelry, furs, silverware, goldware, firearms, etc.
• Loss of Use (Additional Living Expenses) - applies to the policyholder's exposure to financial loss, apart from the property damage itself, if the residence premises where the insured resides is damaged so badly that is not fit to live in.
• Personal Liability - Coverage is provided if a claim or a suit is brought against and insured because of bodily injury or property damage allegedly caused by the insured. Coverage includes defense costs.
• Medical Payments to Others - covers the necessary medical expenses incurred by others (not an insured). Coverage does not imply negligence.