Even if you furnished your off campus apartment in Early Salvation Army, replacing those pieces, your clothes, TV, jewelry, microwave, computer, printer, Kindle, cell phone and drum set would be very expensive.

You may view your living arrangement as a temporary one - good for just the school year and thus you don't need protection. That's a mistake. Fires, water leaks, thefts and accidents happen and they can be devastating. Think about the recent floods in Ames (Iowa), hometown of one of our leading universities.

And don't count on your landlord. A landlord's insurance does not cover your furniture nor any other contents of the apartment. You need renter's insurance to get reimbursement. It's best to take out a policy that will cover at least 80% of the replacement cost of your possessions.

To be more specific, with renters insurance your possessions are covered against loss from fire, smoke, lightning, vandalism, theft, explosion, windstorm and water damage (but not including floods). It also covers your responsibility to other people injured at your apartment or elsewhere by you, a family member or most pets. In addition, it pays legal defense costs if you are taken to court.

$TIP: The good news is that because renters insurance typically covers only the value of your belongings, not the value of the physical building, the premium is relatively inexpensive. 

Renters insurance also covers any additional living expenses if you must leave your apartment because of a fire or other covered disaster. Most policies reimburse the difference between your additional living expenses and your normal living expenses.

Caution: Many companies, however, set a limit regarding the dollar amount they will pay under these circumstances.

Beyond The Basics

Think about adding some extras to your basic policy.

For example, if you (or any of your roommates) are big party givers, look into having a rider added on for "host liquor" coverage. This protects you against lawsuits from enthusiastic guests who, after leaving your all-nighter, are involved in an alcohol-related accident.

Note: A rider is an additional provision that modifies or amends your basic insurance policy. It may increase benefits or make other changes. You'll also see it referred to as an "endorsement" or "attachment."

Or, if you own a musical instrument or you have been given your grandmother's silver tea service, your father's antique watch, a stamp collection or other valuables (and they are in your apartment), get a separate floater providing extra coverage for specifically named valuables.

It's a good idea to have "all-risk" coverage in this floater policy, so you will be reimbursed no matter how your valuables were lost or damaged. An all-risk policy covers every risk that the policy doesn't specifically exclude.

Avoid floater policies that come with a "named-peril." This means that the insurance company will reimburse you only when the type of loss is listed (or "named) in the policy. So if your loss is caused by a natural disaster not listed in the policy, you'll get zip reimbursement.

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