I'm fine because my landlord's insurance will cover the losses.  Most of the time, a landlord's insurance covers only damage to the building itself. For instance, if your apartment caught fire, the landlord's insurance would cover repairs to the building but would do nothing to replace the destroyed or damage property of the tenants. Even damage to the building's structure might not be covered if a tenant caused the damage. For instance, if you leave a faucet running and it ruins your floor and floods the apartment below you, you may end up paying for the entire mess.

My possessions aren't worth insuring. You may own a second-hand couch and sleep on a seven-year-old mattress on the floor, but consider the value of your collection of books, CDs, and DVDs. You might be surprised at how much those things would cost to replace. According to State Farm Insurance, most people own more than $20,000 worth of property. It would be helpful to make a list of each item you own before you ever need to make a claim. List each item along with its year of purchase and what you think it would cost to replace it today. State Farm's website can help you make an inventory of your possessions prior to contacting an insurance carrier for a quote. Check it out at: http://www.statefarm.com/insuranc/renters/howmuch.htm.

Renter's insurance is too expensive. Major insurance carriers may charge you far less than you expect. Quotes for a year's worth of renter's insurance for a five-bedroom house typically will be in the $150-200 range, which amounts to less than $17 per month. This was the quote for "standard" personal property valued at $35,700, the amount the insurance companies consider to be reasonable for the average renter that year. These quotes assumed that the house had a smoke alarm and fire extinguisher, and the policy included a deductible of $500 per incident and medical coverage for the occupants. Raising the deductible can get you even lower monthly costs. For a slightly higher per-month fee, you can opt for reimbursement based on current replacement cost for your property rather than the items' original value.

I don't have to worry because my building has great security. Renter's insurance typically covers more than just thefts and accidents that happen on the actual premises. Under many policies, if your suitcase is stolen while you're on vacation or if items are stolen from your car, you'll be covered. Your policy could also include protection if you accidentally injure a visitor or if someone falls down and breaks a toe while dancing during a party at your pad. You may even receive compensation for legal defense costs in the case of a lawsuit resulting from such an injury.

Insurance is about protecting yourself against bad luck you don't expect. You can gamble on the idea that nothing bad will ever happen to you. Or, each month, you can buy peace of mind for the price of a movie ticket plus a tub of popcorn. For this small payment, renter's insurance guarantees that if your apartment is ever robbed or your property severely damaged by a natural hazard, you will have the money to replace the clothing, books, movies, and music CDs you've worked so hard to pay for.  Below are examples of the types of coverage available.

Personal property coverage

Coverage varies by state, company, and type, but below are basic examples of personal property to include in an inventory. Items not listed here may still be insurable. You can ask your agent about including other options for a customized policy.

Property that's usually covered:

• Stereo systems, VCRs, and television sets
• CDs, DVDs, videos, and tapes
• Cameras and other photography equipment
• Movable appliances, including microwave ovens
• Furniture
• Sports equipment
• China and glassware
• Clothing
• Books
• Miscellaneous

 Property typically covered but with limitations:

• Home computers
• Cash, including coin collections
• Checks, traveler's checks, and securities
• Jewelry and watches
• Precious and semi-precious stones
• Comic books, trading cards, and stamps, including collections
• Antiques and fine art
• Goldware and silverware (theft only)
• Rugs, wall hangings, and tapestries
• Firearms (theft only)
• Furs or clothing trimmed in fur
• Boats or other watercraft, and related equipment

 Natural hazards coverage

Natural-hazard coverage also varies by state and company, but most policies protect your property against losses created by the following:

• Vandalism
• Water damage from failure of plumbing or appliances
• Frozen water pipes
• Hail
• Windstorm
• Smoke
• Explosion
• Vehicles or aircraft

If you're willing to pay a higher premium, most insurance carriers offer options to add coverage not included in the standard policy. These options would cover damage caused by:

• Earthquake, landslide, or other damage caused by movement of the earth
• Water damage cause by an underground source or flooding
• Nuclear-hazard damages