Hi friends, thanks for downloading the Money Girl Podcast.

I'm Laura Adams, author of the award-winning guide to personal finance called

Moneygirls Smart Moves to Grow Rich.

Visit your favorite bookseller and download the e-book or order a copy of the

paperback for yourself or to give us a gift. Since the housing crisis many

Americans have decided that it makes more financial sense to rent a home than to buy one.

However, being a tenant doesn't mean that you're off the hook for insurance.

In today's episode, we'll cover what you should know about renters and insurance. In today's episode, we'll cover what you should know about renters insurance and how to shop for the best policy to keep you and your belonging safe.

Renting can be the right financial decision for many people, depending on where you live, your work situation, and the lifestyle you want.

However, less than one-third of all renters have renters insurance.

Many renters mistakenly believe that their possessions are automatically covered by their landlord's insurance.

This is dead wrong.

Your landlord's insurance generally covers the building and grounds only, not your personal belongings or your liability.

Renters Insurance gives you three main types of financial protection.

Number one, coverage for your personal belongings. Number two, liability

protection against a lawsuit and three, reimbursement for additional living

expenses. It's terrible to think about, but what would happen if the

apartment or home you rent was completely destroyed, as was the case for a lot of

people in the Northeast who were devastated by Hurricane Sandy.

Renters insurance protects you if your possessions are lost or destroyed in a natural disaster,

such as a fire, lightning strike, windstorm, certain kinds of water damage,

or in the event of theft or vandalism.

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