If you think tenants insurance isn't important, think again. It's the often overlooked, but always important way to protect yourself and your belongings. Because most tenants assume they are covered by their landlord's insurance policy, they don't look into renter's insurance, but we want you to be smarter than that.

Here are a few reasons why you should make sure you're covered:

• It's affordable. You wouldn't question the importance buying home or car insurance, and tenants insurance comes at a considerably lower cost. The cost is especially affordable when you consider the cost of replacing all of your belongings at once.
• It covers your personal belongings. Many tenants assume they are covered under their landlord's insurance policy, which actually covers damage to the building, and the landlord's own liability, not the tenant's. If you were to take an inventory of your personal belongings, you'd see that the value not only adds up fast, but that your belongings are worth looking after in the event of an unexpected incident.
• It provides liability coverage. If you or someone else is injured in your home, tenants insurance can not only protect you, but cover legal and medical expenses as well. It can also cover legal payments you would have to make if you were successfully sued.
• It covers your belongings even if you're traveling. Tenants insurance covers your personal belongings, whether they're in your home, or with you while you travel.
• It may cover additional living expenses. In the event that you can't live in your rented home because of an insurance claim being settled, or repairs being made, your policy could cover the cost of living somewhere else temporarily.

How are insurance premiums calculated?

A number of factors are taken into account when calculating your insurance rate:

• Where you live, and how safe the area is.
• The amount of coverage you're looking for, including add-ons.
• Your deductible.
• How the home was constructed.
• Your claims history.