This is a guest post from Bailey Harris. Bailey enjoys writing about insurance and related topics.

Many renters feel that they do not need to have a renter’s insurance policy. They either assume it is expensive and a waste of money or that they are covered under the landlord’s homeowners insurance policy. The truth is that renter’s insurance is very reasonably priced and necessary in most cases–a renter’s personal items will not be covered under a landlord’s policy.

What It Covers

Your renter’s insurance policy can cover a variety of different things. It will mainly provide protection in the event that your personal property is damaged. This damage could be from a fire, theft, or vandalism. A policy can also provide you with coverage for unforeseen problems within your appliances, water intakes, and electrical. If your dishwasher overflows with water and damages your floor, it will most likely be covered under your renter’s insurance policy. If you do not have an insurance policy, you will be responsible to fix and pay for the damage to the floor. Your renter’s insurance policy will also provide you with liability insurance. This will provide you with protection against lawsuits arising from an injury that occurred in your apartment.

Document Your Belongings

This is a critical part of insuring your possessions. You will need to take inventory of all your personal property. This should include an itemized list containing product names, serial numbers, amounts paid, and the value of the item. It is also necessary to take pictures of every room in your apartment, including the inside of closets, drawers, and any storage or outdoor buildings. Keep these items in a bank safe deposit box or in a fireproof safe and update them at least once each year.

Riders and Endorsements

Your renter’s insurance will have a maximum amount of coverage for one item, this is generally $1,000. If you have antiques or items that are valuable, you may want to talk to your insurance agent about adding additional coverage through a rider. A policy rider will provide you with additional insurance on specific items, such as an engagement ring or large electronics. You will pay an extra fee but is well worth the extra coverage.

Choose Your Coverage

When obtaining renter’s insurance, you will need to choose between actual cash value and replacement value. This is an important decision and should be discussed with your agent. Actual cash value will not replace your item; it will only give you the cash value less depreciation. For example, if you paid $1,200 for your computer two years ago, it may only be worth $500 now. A policy with replacement value will ignore actual cash value and give you enough money to replace the item instead.

Ways to Save Money

You may be surprised to know that you can get renter’s insurance for around $20 a month. This will usually insure your possessions up to $35,000 and give you up to $200,000 in liability insurance. A great way to save money on all of your insurance policies is to have them all with the same company. Many insurance companies will give you a discount just for having multiple policies with them. Having a good credit history can also lower all of your insurance premiums since most companies check credit scores prior to writing a policy. You can also receive discounts for installing safety equipment and security devices.