To buy, or not to buy? When making this decision, consider the net value of your possessions and the likelihood that they’ll suffer damage. If your belongings are worth a lot and you live in a high-risk area, having renters insurance could end up saving you a huge slug of money. On the other hand, if your most valuable possession is the couch that you bought off Craigslist for $30, renters insurance may be less necessary.

State Farm offers a useful spreadsheet that will help you to generate a list of all your stuff. Check it out here: Home Inventory Checklist.

Keep a few other things in mind too. Your insurer may put you up for a month in a hotel if a fire destroys your rental apartment. And remember that deliveryman with the tailbone – are you going to be having a lot of pizza parties? That $25 a month may seem like a bargain if another deliveryman – or a rowdy guest – falls down and sues you.

If you’re 25 or younger, chances are that you’re still covered under your parents’ homeowners insurance, whether you’re living on or off campus. That said, be sure and get your parents to double check their insurance policy to make sure that your belongings are covered while you’re at school.

Want to Know More?

• What is Renters Insurance?
• Advice for Getting a Good Deal
• Grilling Guide: Questions to Ask Before Buying Renters Insurance