One of the great things about renting instead of buying is that you don’t have to deal with the commitment of a long-term investment. But that doesn’t mean your home doesn’t have value, or that this value isn’t vulnerable. After all, even if you don’t own the space itself, it holds most of your personal property. And as a tenant, you’re liable, or legally responsible, for what happens there. That’s why it’s a smart idea to get renter’s insurance. It’s a relatively affordable way to get some peace of mind along with legal and financial security.

Your landlord carries insurance, too, but it covers only the building and not your property. So, if a leaky roof floods your living room, you won’t have to pay for repairs to the floor, walls, or other parts of the dwelling, but you will be stuck with the cost of replacing or repairing anything that you lose as a result of the flood. But if that flood is your fault, — because you left water running in the bathtub — you may be liable for all the damage that’s done.