There are a lot of reasons to rent vs owning your home. It can save money. It offers freedom to move. But, just like a homeowner, renters have possessions. Clothes, furniture, and electronics add up over the years and help create the environment that is your home. However, studies show that in 2014, 95% of people who owned their home protected their investment with homeowners insurance. In contrast, only 37% of renters protected their belongings with renters insurance.

Is it worth it? Yes, it is. Here are five reasons why.

It Might Happen To You

It's easy to fall into the "It won't happen to me" mindset, but the fact is, things do happen. Statistically, 1 in 4 homes will be damaged by a fire at some point and fires don't pay attention to whether you own or rent.

Home burglaries account for roughly 75% of all burglaries in the U.S. Renters are 85% more likely to be victimized than owners.

Besides fire and burglary, renters insurance covers vandalism, windstorms, hail, water leaks/overflows, and smoke damage. However, flood and earthquake damage is rarely covered by a regular renters insurance policy. Those need to be purchased separately.

You Might Need to Move Out During Repairs

If a fire or water leak creates damage in your home, it can be a big project to get it repaired. Depending on the amount of damage, you may even need to find somewhere else to stay during the repair period. If you're not lucky enough to have family in town, that could mean a hotel stay.

Renters insurance will help cover costs of additional living expenses while you are temporarily displaced.

Your Stuff Is Worth More Than You Think

Renting doesn't mean you don't have a lot of stuff. Think about your wardrobe: shirts, jackets, shoes, boots, handbags, pants and other items.

Do you enjoy technology? That average household in the U.S. has three TVs. It also has over 3 computers. So what about other electronics, housewares and other items like personal collections? It has been estimated that the average new renter has roughly $30,000 worth of stuff.

Does that mean that you need to get coverage for $30,000 immediately? No. Log the items in your home and figure out just how much you have and buy a policy accordingly.

You're More Vulnerable Than You Think

Your friend comes over, trips on a loose piece of flooring and hits his head.

Are you liable for damages he suffers? Yes.

If your tub overflows and floods your apartment and the one downstairs, you're on the hook too.

Renters insurance provides liability coverage that can help protect you against the things that can happen in your home that affect others. The last thing you need is a costly lawsuit for damages. Stay covered.

It's Ridiculously Affordable

When you're renting, the last thing you want to do is to add another $100 bill onto your monthly expenditures. Between rent, the car payment, car insurance, health insurance and your utility bills, you spend plenty.

But the average tab for a good renters insurance policy is $15-30 per month.

That means just a couple of hundred dollars per year can protect the stuff in your apartment or home. You can even save more by bundling with your other insurance policies or having a high deductible.

You may not own your home, but you do own things that help create the life you enjoy. That's worth protecting.

Renters insurance is a simple, affordable way to make sure you don't lose everything you have in the life you've built.

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