Less than l8 percent of people who rent housing in the U.S. have purchased renter’s insurance and that can lead to big losses.

The Insurance Information Institute recommends that all renters purchase insurance. The policies start around $130 per year and go up depending on the amount of coverage needed.

Many tenants believe that if they rent an apartment or house their landlord’s insurance will cover problems. Not so. Many landlords have insurance, but only to protect the building.

There are several aspects to renters insurance. Personal belongings coverage includes things such as furniture, clothing and other personal possessions. Expensive items such as jewelry or furs may require a rider.

Liability coverage is one of the best reasons for renters to have insurance because it provides protection in case you are sued for injuries or damages caused by yourself, a family member or even your pet.

If there is a fire or other disaster, your insurance should pay for any increase in living expenses if your apartment cannot be occupied.