Whether you’re living in a rental temporarily or over the long term, renter’s insurance is a vital coverage for you and your family. Have children living off-campus at college? They need renter’s insurance, too. Here are two key ways this type of insurance protects you and your family:

Your personal possessions. Renter’s insurance will replace your personal possessions in the event of a burglary, fire or other covered disaster. As with homeowner’s insurance, renter’s insurance does not cover floods or earthquakes. You will need to purchase a separate policy for these two types of disasters.

Your financial resources. Liability protection is an important part of renter’s insurance. This type of coverage protects you in the event that you, your child or pet injures someone else or damages their property. Without liability coverage, your financial resources can be wiped out in the event of a lawsuit. Here’s another way renter’s insurance protects you: If the home you’re renting is destroyed by a disaster that your policy covers and you need to live elsewhere, renter’s insurance provides living expenses. Without that coverage, the cost of temporary lodging can really add up.

Renter’s insurance is a cost-effective way to protect you and your family. Here’s nifty renter’s insurance checklist to help you purchase the right amount of coverage.