In this year we have suffered from recession and that makes us save more of our money. One way that people have used to be practical and save some is buy renting some properties. Everyone lives in a rental property at some point in their lives, and many never own their own home. Since people will accumulate possessions with some value, a renter's insurance policy becomes prudent at some point. They cover mostly things such as fire, vandalism, and theft, but additional coverage can be purchased for floods and earthquakes, in applicable areas. There are two types - replacement cost, where the policy will cover purchase of comparable replacements, and Actual Cash Value or ACV, which pays you what the item is worth. A fire will set you back more than a payday loan, so insurance, even for renters, is something to consider.