Counting the cash tied up in personal belongs can rack up fast.
Money invested in furniture, clothes, appliances and electronics can add up to a significant amount.
"You see so many stories on the news where there has been a fire and everyone has lost everything," Tammi McCada, State Farm Insurance Agent said.
McCada said renters don't have to watch their stuff go up in smoke.
She said it's relativley inexpensive to protect belongings with renters insurance, depending on how much the personal property is worth.
"It can run as little as $12 a month up to $35 or $40," McCada said. "For most people who have auto insurance, renter's insurance will actually give them a discount."
It covers two different areas of protection.
"It's going to provide coverage for their contents; all their personal property. Everything from furniture, to dishes, to electronics," McCada said.
The second is liability coverage.
"That's something that most people don't think about. Lets say you were negligent and caused damage to your landlord's property. Liability coverage is going to pay to repair that property and put it back the way it was," McCada said.
McCada advises renters in a roommate situation to take extra precaution.
"People sharing the same apartment, it's always better for everyone to get their own policy so there's never a question of who owns what," McCada said.
For students deciding to shack up on campus, it's likely they're already covered.
"An insurance company will still define you as a resident in your parent's household. Usually a parent's homeowner's policy will extend and provide coverage for students living in a dorm," McCada said.
McCada adds that water damage from plumbing leaks is included, but flood insurance is an extra requirement for rising water damage.