According to the Insurance Information Institute less than half of those renting a home have a renter’s insurance policy.

“Every year we work with families who have lost everything in a house fire, but do not have renter’s insurance to cover their belongings. It is heartbreaking to see them loose everything,” says CCFR Chief Russ Mason. “A renter’s insurance policy is a simple way to protect your property.”

Renter’s insurance policies typically cover the replacement cost for personal property such as furniture, clothing and electronics in the event of a fire, theft or vandalism. These policies can also include additional living expenses you might incur if your home is not available because of a fire or burst pipes.

According to the National Association of Insurance Commissioners the average renter’s insurance policy premium in the U.S. in 2005 was $193 a year, or less than $20 a month.

The Insurance Information Institute explains the two types of renter’s insurance policies: - A cash value policy, pays policyholders to replace their possessions minus a deduction for depreciation.

- A replacement cost policy costs at least 10 percent more because it pays policyholders the actual cost of replacing their possessions, up to the policy limit.

Every insurance policy is different, so check with your insurance agent for questions about your individual situation or policies.

For more information about renter’s insurance contact your local insurance agent or visit the Insurance Information Institute (http://www.iii.org/index.html).