While renters can purchase renters’ insurance for less than $20 a month to ensure their belongings are covered against losses from fire, theft, smoke, lightning and other dangers, a 2014 Insurance Information Institute poll indicates that only 37% of renters cited having renters’ insurance. The percentage is down from 43% in 2006.

“Too many renters underestimate the value of the personal possessions they’ve accumulated over the years or assume their landlord’s insurance policy covers their possessions,” Ellen Melchionni, NYIA president said. “Renters insurance is an affordable way to ensure you are protected from a number of different risks.”

Purchasing renters’ insurance protects against personal possessions, but also safeguard renters’ against lawsuits and cover additional living expenses should an accident occur, and the renter is unable to live at home. Additional liability policies can cover other damages in the event of unexpected events, including earthquakes and floods.

“A standard renters policy provides coverage for big-ticket personal items—such as furniture, computers and television sets—in the event they are damaged or destroyed,” she said. “And, like homeowners insurance, renters insurance protects you from liability. The insurance covers your financial responsibility for injuries accidentally caused by you, a family member, or your pet and pays legal defense costs if you are taken to court.”