Many renters are missing out on the roommate of their dreams - a roommate that you hardly ever notice except when you’re in a jam. If your apartment gets broken into and your computer’s stolen, if you microwave a pop-tart and start a fire, or if a pizza deliveryman falls down your staircase, breaks his tailbone and sues you, then this roommate’s got your back.

We’re talking about renter’s insurance.

Renter’s insurance protects your personal property if it gets destroyed or stolen and it protects you from liability if someone else is injured while on your property. Best of all, it doesn’t cost too much. You should consider buying renters insurance whether you’re renting an apartment, a condominium, or a house.

There are two kinds of renter’s insurance policies:

• Actual Cash Value Insurance – This policy reimburses you the depreciated value of your lost or destroyed possessions. This means that if a thief steals a TV you bought for $2,499 – and it’s now worth $1,000 – the insurance company would only give you $1,000.

• Replacement Cost Insurance – This policy pays you the amount of money you’d need to replace your lost or destroyed items. It generally results in a larger check from the insurance company. Replacement cost insurance usually costs about 25 percent more than actual cash value insurance, and – if you can afford it – it’s usually worth it.

If you have a whole bunch of pricey jewelry, electronic equipment or some kind of expensive collection of stuff, the basic renters insurance plan may not provide sufficient coverage. Most policies will only cover $1,000-$2,000 worth of stolen jewelry. Other expensive items and equipment face similar limits. You’ll probably have to pay to increase these limits, or you can buy special supplementary coverage (sometimes called article coverage ).

The smallest, most inexpensive renters insurance plans will usually cover $10,000 worth of your possessions. Typically, $150-$300 per year ($12-$25 per month) will get you about $30,000 to $35,000 worth of coverage for your personal possessions and somewhere between $100,000 and $300,000 worth of liability protection (so you don’t have to pay the deliveryman with the broken tailbone out of pocket).

Want to Know More?

• Do You Need Renters Insurance?
• Advice for Getting a Good Deal
• Grilling Guide: Questions to Ask Before Buying Renters Insurance