Are you covered in the event that there is a fire in your rental building?  What if the guy upstairs leaves the water running in his tub and floods your apartment?  How about when a friend slips and falls in your living room breaking his arm?  If you haven't given these questions some thought, you should. Renter's insurance is the answer.

Many renters are under the mistaken assumption that their landlord's insurance provides them with coverage.  In most case it does not.  A renter is responsible for the contents of his or her apartment.  Renter's insurance can provide coverage against loss from damage such as fires or floods. It also does much more.  A Renter's policy also protects the tenant's property from loss while away from the apartment - such a laptop computer stolen while at the coffee shop or luggage stolen from your car.

Additionally, such coverage also typically includes third party liability coverage, paying claims for injuries to others while at your home. If you do not currently have coverage, you should definitely consider it.  The cost is very reasonable.  The annual premium on a policy protecting up to $50,000 in contents is approximately $300. Before buying coverage, take an inventory and assess what it would cost to replace (at today's prices) all of the contents of your home. It's important to select a policy that provides for replacement cost coverage - otherwise you will be paid only the depreciated value of your lost property. Also, document the contents of your apartment by taking photographs or a video of all of your belongings.  Place that information and a copy of receipts for any significant items in a safe deposit box or with a fiend or relative. Being prepared and eing covered will ease the stress of any potential loss and will help you recover quicker.