A fire burns a building down in flames. The tenants' personal possessions are destroyed. Those with renter's insurance will be compensated for their possessions.
However, those who don't have renter's insurance are left devastated.
Sixty-five percent of renters don't have insurance, said T. Kinning-Pflueger, an agent at State Farm Insurance, 521 Fourth St. in Berthoud.
Renter's insurance covers personal goods from fire, burglary and other losses, and personal liability insurance covers against lawsuits. Kinning-Pflueger gave the example of someone tripping and hitting his or her head on the counter of an individual's house. If that person chose to sue that individual for medical costs, he or she would be covered by insurance.
Kinning-Pflueger recommends all renters get insurance.
The only time renter's insurance is not recommended is when students are living in a residence hall room, said Brandy Simpson, a customer-service representative for William Lacock Insurance Agency, 1900 Wallenberg Drive. These students are stilled covered by their parents' insurance, because they are still considered primary residents of their parents' household.
The landlord's policy only covers the dwelling and the property it is on.
"A lot of people think that the landlord covers (their belongings,)" Kinning-Pflueger said.
She said 84 percent of apartment managers recommend renter's insurance to their tenants.
Simpson said that students are usually recommended to get $20,000 in coverage.
"(Possessions) add up a lot faster than you think," Simpson said. She recommends tenants take a video and photos of their possessions and place of residence and keep it away from their home.
While renter's insurance is important, few students purchase it.
"There is a small percentage (of students), but I think landlords are starting to recommend it more and more," Simpson said.
Many students don't want to pay the money for renter's insurance, which usually runs $10-$15 a month.
"It's the price of a pizza per month," Kinning-Pflueger said.
Brian Somerville, a senior mechanical engineering major, said that he think students need renter's insurance if they have a lot of valuables and do not have faith in their landlord.
He said a lot of people probably don't get renter's insurance because of the cost or they don't have a lot of valuable possessions.
"I think a lot more people would get (insurance) if they knew the cost," Somerville said.
Mike Grace, a sophomore engineering major, said that he does not have renter's insurance even though his parents and people who have gone through school recommended he get it.
"I live in a dilapidated house, so no one wants to steal my stuff," Grace said.