Homeowners live with the fear of break-ins and burglary. Those living in areas prone to floods or earthquakes have an added risk, that of losing their home and property to these natural disasters. But it is not only homeowners who are affected. Renters, too, can lose property to thieves, floods or fires as safety for them is not guaranteed either.

Starting afresh following a loss of personal belongings can be depressing and financially straining, unless of course you have several million dollars sitting idle in some bank or safe. It is one thing to know you have some money somewhere that can save you on a rainy day, but it is an entirely different matter when you have no savings and worst of all, no insurance coverage to help you shoulder your loss.

Insurance products have improved over the decades. Gone are the days when you could count the various rental insurance policies available on one hand. Today, there are all types of policies, fully customized to meet very individual needs. A policy that most tenants should probably have is renters insurance.

Unfortunately, many tenants do not have this insurance policy, often because of the assumption that it is unaffordable. Surprisingly, renters’ insurance is one of the more affordable insurance policies on the market — especially if you have home security systems, for instance, which help to lower the premium and means that a policy can start from as little as $160 a year.

Now you know you have no excuse for not having this policy that will cover property against:

• Burglaries
• Fires
• House Destruction
• Natural Disasters

Choose a cover amount that reimburses most or all of your lost or damaged belongings. Note that while it would be great to receive compensation for all your belongings, but most insurance companies put a cap on how much you can receive for valuables. The best solution is to purchase a rider equal to the value to your valuables.

Even as you plan to purchase insurance for your property, financial planning is what will help avert most of the heart-ache when the safety of your property is compromised. Increasing your monthly savings amount is a great way to ensure that you have some money to get you through a disaster such as property loss.

However, financial planning is not limited to savings alone. It includes risk management, increasing your investment and asset portfolio, increasing your earnings and eliminating unnecessary expenses. If you have various loans, consider consolidating them into a manageable, lower amount, as well.