When you live in an apartment, all of your eggs really are in one basket. Sure, you can care for your place and your things, but ultimately the building you live in is vulnerable not only to your errors or your accidents, but to the errors and accidents of everyone else in the building.

Take, for example, apartment fires. All it takes is for one irresponsible neighbor to leave one cigarette burning to destroy all of your stuff, including your clothes, your furniture, your electronics and more. To make matters worse, studies show that most victims of apartment fires don’t have renters insurance.

It’s truly unfortunate, too, because renters insurance usually isn’t that expensive. Generally speaking, you can purchase several thousand dollars worth of coverage for just a few dollars a month. The cost of renters insurance is relatively low compared to the cost of homeowners insurance, largely because you’re not paying to insure the building but just the contents.

After an apartment fire, many renters find themselves facing a total loss. Just the act of the sprinklers coming on will destroy quite a bit of property, especially electronics. That is to say nothing at all of the smoke damage that can occur to your furniture.

When the restoration company shows up to assess the damage and declares it a total loss, it can be tough news to take.

In many locales, it’s required to have renters insurance to move into an apartment. Local laws may require it, or in some cases landlords can mandate that residents carry renters insurance. Unfortunately, even in these kinds of places, many renters still don’t have an active renters insurance policy when the time comes.

The residents take out the policy initially, but then they decide not to renew it, or it just falls off their radar altogether and the policy gets canceled. When disaster strikes, they’re stuck not only having to find a new place to live, but without any of their possessions.

Unless the fire is caused by the apartment owners, residents are solely responsible for the well-being of their belongings.

Paying the $10 or less a month for renters insurance is really a no-brainer. It takes the stress out of having to replace all of your furniture and electronics and other possessions. Costs can add up quickly, and it’s much easier to rebuild a life when you have a valid insurance claim.

Photo via skeddy in NYC