The average renter has possessions ranging in value from $20,000 to $30,000, according to various major insurers. Renters insurance will cover the loss of your possessions up to your selected limited. Also keep in mind that certain types of property will only be covered up to a limit set by your insurance company—$2,500 for electronics and $1,500 for jewelry, for example. So, if you have a wedding ring, a customized computer, then consider purchasing an additional personal articles policy. These add-ons to your renter’s insurance are typically inexpensive (we’re talking a few dollars every month), but protect those really important items that would be costly to replace.

Your liability coverage pays for bodily injury and property damage caused by negligence—like if your dog gets loose and bites the neighbor’s kid and he has to get stitches. You’re not, however, covered for negligence for expected or intended bodily injury (you throw a baseball in a parking lot trying to hit your neighbor), business pursuits (the cupcakes you bake in your apartment make someone sick with food poisoning—you would need a business owner’s policy), or vehicle-related damage or injury (your emergency brake fails and your parked car hits someone—auto insurance covers this).