If you are renting solely so that you can save money before buying a home, renter’s insurance may seem like an unnecessary expense. It may seem like an extra that while nice to have, you can’t afford. The truth is the opposite. You can’t afford not to have renter’s insurance. If the worst should happen – a natural disaster, robbery – renter’s insurance will cover the cost of your possessions. You won’t be forced to start from scratch, which will automatically save you money. Should such a disaster destroy your rented home, many policies will pay for a temporary place to stay. Moreover, if an outside party is injured in your home, the liability coverage in your policy will protect you. You won’t have to worry about losing a sizable chunk of your income or savings. Your ability to buy a home will remain in tact regardless of the unforeseen. When you start looking for renter’s insurance, which is what you should do immediately, don’t settle for the first policy you find. Be aware that you have options. You can get an “Actual Cash Value” policy, which will pay for the replacement of your possessions minus a small deduction, or a “Replacement Cost” policy, which completely pays to replace your items. Neither choice will extend by your policy’s limit, however. Therefore, you can get floaters. Floaters will extend the policy to cover particularly expensive items, such as jewelry, fur and computer equipment. Whatever policy you opt to get, make sure it’s a good one. If you have shopped before settling you will know it is. Additionally know that the money you are paying now, is saving you money in the future.